What is the break-even point?

The break-even point is the number of units you need to sell in a period to cover all fixed and variable costs — earning exactly $0 profit. Every unit sold above break-even generates contribution margin that becomes profit.

How do I use break-even analysis for product launches?

Calculate break-even units before launching to understand how many you need to sell to cover costs. This helps set realistic sales targets, marketing budgets, and inventory levels.

Why is contribution margin important?

Contribution margin (price minus variable costs) shows how much each sale contributes toward covering fixed costs and generating profit. Higher contribution margin = fewer sales needed to break even.

How accurate are these calculations?

Our calculators use industry-standard formulas and are designed for directional accuracy. Results depend on the quality of your input data. For precise financial planning, we recommend validating results with your accountant or financial team.

Is this really free? What's the catch?

Yes, completely free with no hidden costs. We offer these tools to help ecommerce brands succeed. We may occasionally share relevant insights via email if you opt in, but the tools remain free forever.

Is my data private and secure?

Your calculations run in your browser, and we don't store the numbers you type unless you choose to send them — by unlocking a benchmark, emailing yourself a report, or contributing an anonymous data point. We do record anonymous usage events, which tool was used rather than what you entered. The AI tools work differently: your store URL and the report or concepts we generate are saved so we can support you and so your share link keeps working. We never access your Shopify admin, your customer data, or any private account information.

Break-Even Calculator

How Many Sales Until You're Profitable?

Know exactly when you'll break even—and plan your inventory, pricing, and growth accordingly.

Your Costs

SimpleAdvanced

Monthly Fixed Costs*

Variable Cost per Unit*

Average Selling Price*

Current Monthly Sales (Optional)

units

Target Monthly Profit (Optional)

Revenue vs Costs

400

units / month to break even

Break-even point summary
Units	400
Revenue	$20,000
Total Costs	$20,000

Revenue

Total Costs

Values update as you type.

BREAK-EVEN BREAKDOWN

Your Results

Break-Even Units / Month

400

Sell this many units per month to cover all costs. Daily target: 14 · weekly: 93.

Break-Even Revenue

$20,000

monthly revenue target

Contribution Margin

50.0%

$25 per unit

Daily Units Needed

units per day

Weekly Units Needed

units per week

WHAT'S A HEALTHY CONTRIBUTION MARGIN?

Contribution Margin Benchmarks

Where your contribution margin (CM) falls determines how quickly you can reach break-even.

< 30%At-RiskVery little left to cover fixed costs — scale carefully and prioritize cost reduction.

30–50%WorkableCovers fixed costs at moderate volume. Improve margins before aggressive scaling.

50–70%HealthyStrong unit economics. You can scale and still hit break-even at achievable volume.

70%+StrongExcellent contribution margin. Low break-even point and high resilience to cost increases.

Your CM: 50.0%

Break-Even Status: Your break-even point is achievable with focused growth efforts.

WHAT TO DO NEXT

Your 3 highest-leverage moves

(Strong Performance)

Only 400 units needed to break even — you have room to scale

Use your margin buffer to test new channels or audiences

Consider investing in content and organic acquisition

Audit your store

FAQ

Frequently asked questions

Common questions about break-even analysis and profitability

GLOSSARY

Learn These Key Metrics

Contribution Margin

The profit earned on each unit sold after deducting all variable costs....

Gross Margin

The percentage of revenue remaining after subtracting the cost of goods sold (CO...

Average Order Value

AOV

The average dollar amount customers spend per order/transaction....

Customer Acquisition Cost

CAC

The total cost of acquiring a new paying customer, including all marketing and s...

Return On Ad Spend

ROAS

The revenue generated for every dollar spent on advertising....

Browse all glossary terms

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FOUND YOUR NUMBER

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