Break-Even Calculator
Find how many units and how much revenue you need to cover your fixed costs (ad budget plus overhead) at your current price and margins.
Units to break even / month
The detail behind it
Break-even revenue / mo
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Contribution margin / unit
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Contribution margin
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How the math works
Contribution margin per unit = price minus product cost, shipping, platform fee and refund loss.
Break-even units = total fixed costs (ad budget + overhead) ÷ contribution margin per unit. Revenue = units × price.
How break-even works
Break-even is the point where total revenue exactly covers total costs: you make zero profit, but lose nothing. Below it you are subsidising every sale; above it each unit is pure contribution to profit.
The key number is contribution margin: what each unit contributes after its own variable costs (product, shipping, fees, refunds). Divide your fixed costs (typically ad budget plus overhead) by that contribution margin to get the units you must sell.
If your contribution margin is negative, no volume will save the product; you must raise price or cut per-unit cost first.
Frequently asked questions
What is contribution margin?
It is the selling price minus all per-unit variable costs (product, shipping, platform fee, refunds). It is the amount each sale contributes toward fixed costs and profit.
What counts as a fixed cost?
Costs that don't change with each sale: your monthly ad budget, software, rent, salaries. This calculator combines an ad budget and an 'other fixed costs' field.
Why does my break-even seem so high?
Either your contribution margin per unit is thin or your fixed costs are large. Raising price or lowering per-unit cost reduces the units needed fastest.
Is it free?
Yes, free with no signup; everything is computed in your browser.
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