๐ฐ Finance & Pricing
Order Break-Even Calculator
Calculate break-even volume by price and cost. All calculations run locally in your browser โ free, instant and private.
โ๏ธ Order cost and price structure
๐ Rates charged on revenue
๐ก Same-currency calculation; no FX; damage reserve on revenue; excludes tax and capital cost
๐ Break-Even Guide
One formula for the break-even point
Break-even quantity = fixed costs รท (unit price โ unit variable cost). The denominator is the contribution margin per unit: each sale first covers its variable cost, then chips away at fixed costs; everything beyond break-even is profit.
Example: ยฅ5,000 in tooling and sampling, a price of ยฅ12.5 and variable cost of ยฅ8.2 give a ยฅ4.3 contribution โ you break even at 1,163 units. Enter a target profit to get the volume needed to hit it.
Fixed vs variable costs
Fixed: tooling, sampling, store setup, design. Variable: product cost, first-leg freight, packaging, commissions, payment fees. Rule of thumb: if doubling volume doubles the cost, it is variable. For Amazon FBA, conservatively treat most storage fees as variable to keep the break-even point safe.
โ FAQ
Is the break-even quantity always a whole number?
The tool rounds up โ unit 1,163 is the first one to cross the line when the raw result is 1,162.8.
What if price is below variable cost?
Contribution is negative: you lose more with every sale. Raise price, cut costs, or kill the SKU immediately.