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Home/Seller Tools/Break-Even Calculator
Free Seller Tool

Break-Even Calculator

How many units must you sell before you start making money? Enter your fixed costs, cost per unit and selling price — get break-even units, revenue and a visual profit chart.

Your cost numbers

Type and every result updates instantly.

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Estimate, not a quote. Marketplace fees change — Amazon, eBay, Etsy, Walmart and TikTok Shop update their schedules regularly. Defaults below reflect publicly reported 2026 rates and every rate is editable. Always confirm your exact fees in your seller dashboard before pricing.

Break-even analysis

Based on your numbers above.

Break-even units
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Break-even revenue
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Margin of safety
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Contrib. margin ratio
See calculation detail
Contribution margin / unit–

Contribution margin = price − variable cost. Break-even units = fixed costs ÷ contribution margin. Margin of safety = how far planned sales sit above break-even.

Profit vs. units sold

The red line crosses zero at your break-even point. Green = profit zone.

How to use this calculator

1

Enter fixed costs

Everything you pay whether you sell 1 unit or 1,000 — rent, tools, salaries, your inventory buy.

2

Enter unit economics

Variable cost per unit (product + marketplace fees + shipping) and your selling price. Tip: use our marketplace calculators to get the true per-unit cost first.

3

Read the chart

See exactly where profit crosses zero, and how much cushion your planned sales give you.

Why break-even matters for marketplace sellers

Break-even analysis answers the most important question before you invest in inventory: how many units must sell before this product pays for itself? Fixed costs — your initial stock buy, photography, software, storage — don't care how many units you sell. Each unit sold contributes its contribution margin (price minus variable cost) toward covering those fixed costs. Once cumulative contribution passes fixed costs, every additional unit is profit.

For marketplace sellers, the variable cost per unit should include everything taken per sale: product cost, inbound freight, the marketplace's referral/fulfillment fees, payment processing and ad spend. Use the Amazon FBA calculator or the eBay calculator to build an honest per-unit cost, then bring it here.

Frequently asked questions

What is the break-even formula?
Break-even units = total fixed costs ÷ (selling price − variable cost per unit). The bracketed part is your contribution margin — what each unit contributes toward fixed costs. Break-even revenue is simply break-even units × selling price.
What counts as a fixed cost for an ecommerce seller?
Costs that don't change with units sold: warehouse rent, salaries, software subscriptions, and — critically — your upfront inventory investment. Variable costs move with each sale: product cost, marketplace fees, shipping, packaging, ad spend.
What is margin of safety?
How far your planned (or actual) sales sit above break-even, as a percentage. A 40% margin of safety means sales could drop 40% before you start losing money. Thin margins of safety mean one bad month can flip you into loss.
My contribution margin is negative — what now?
You're losing money on every unit before fixed costs are even considered. Raise the price, cut the unit cost, or kill the product — selling more only deepens the loss.
Should marketplace fees go in variable cost?
Yes — referral fees, fulfillment fees and payment processing are all incurred per unit sold, so they belong in variable cost. That's exactly what our marketplace fee calculators compute for you.

Want higher margins without the guesswork?

Our team manages Amazon, eBay, Walmart, TikTok Shop and Etsy accounts end-to-end — pricing strategy, PPC, listings and operations. Get a free audit of your store first.

Get Your Free Store Audit

More free seller tools

Amazon FBA Profit Calculator

Model referral fees, FBA fulfillment, storage and ad spend.

eBay Fee Calculator

Final value fees, per-order fees and promoted listing costs.

Etsy Fee Calculator

Listing, transaction, processing and offsite ad fees.

Walmart Fee Calculator

Category referral fees on every Walmart sale.

TikTok Shop Fee Calculator

Platform commission plus creator affiliate cuts.