Break-even Calculator

Every eCommerce business has a minimum number of units it needs to sell each month just to cover costs. Below that number, you are losing money. Above it, every additional sale goes toward profit. This is your break-even point.

Enter your fixed costs (rent, software subscriptions, salaries, etc.) and monthly ad spend. These are costs that stay the same regardless of how many units you sell. Then enter your variable cost per unit (COGS, packaging, shipping per unit).

The calculator finds your contribution margin, which is the amount each sale contributes toward covering fixed costs. Break-even units equals your total fixed costs divided by your contribution margin per unit.

Enter your current monthly volume to see your margin of safety. This tells you how much of a buffer you have above break-even. A healthy eCommerce business typically maintains a 20-40% margin of safety.