Free Tool

Break Even Calculator

Find out exactly how many units you need to sell to cover your costs and start profiting.

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Formula

Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit)

What is Break-Even Analysis?

Break-even analysis tells you exactly how many units you need to sell to cover all your costs — both fixed (rent, subscriptions, salaries) and variable (product cost, shipping, packaging).

Below break-even you're losing money. Above it, every additional sale is profit. This is essential knowledge for any e-commerce business.

Why Break-Even Matters for Online Sellers

  • Product launches: Know how many units you need to sell before ordering inventory
  • Pricing decisions: Understand minimum viable prices
  • Ad budgets: Know when ad spend will become profitable
  • Goal setting: Set realistic monthly sales targets

Frequently Asked Questions