E-commerce

Break-even Calculator

How many units you need to sell to cover your fixed costs - and a clear explanation when a price means you never will.

3 inputs Free, no sign-up

Your figures

Costs that do not change with volume: rent, salaries, subscriptions, photography, listing setup.

Everything you pay per unit sold: the product, packaging, shipping and marketplace commission.

What you receive per unit, after any marketplace deductions.

Try an example

Result

Your result

Enter your figures and the result appears here.

Estimates only. Rates, fees and specifications change. Confirm against the official source before you rely on a figure — see our disclaimer.

About this calculator

Break-even is not about the profit on one unit — it is about how many units it takes for the profit on all of them to cover what you pay regardless of sales. The number that matters is contribution: what is left from each sale once that unit's own costs are paid.

If contribution is zero or negative, there is no break-even point at all. Selling more makes the loss larger, not smaller. This calculator says so plainly instead of returning a meaningless figure.

How to use this calculator

  1. Enter your fixed costs for the period you are planning — a month is usual.
  2. Enter the variable cost of one unit: the product itself plus packaging, shipping and marketplace commission.
  3. Enter what you receive per unit after deductions.
  4. Read the units needed and the revenue that represents.

The formula

Contribution per unit = Selling price - Variable cost
Break-even units      = Fixed costs / Contribution per unit   (rounded up)
Break-even revenue    = Break-even units x Selling price
Contribution margin   = Contribution / Selling price x 100

Units are rounded up because you cannot break even on part of a unit. If the arithmetic says 31.2 units, you need 32.

When the contribution is zero or negative the division has no useful answer: each additional sale either contributes nothing or actively loses money, so no volume covers the fixed costs. The calculator reports the shortfall and the price you would need instead.

SymbolMeaningUnit
Fixed costs Costs that do not change with volume ₹
Variable cost Cost incurred per unit sold ₹
Contribution Selling price minus variable cost ₹

Worked example

Fixed costs of ₹50,000 a month, a unit that costs ₹890 all-in, sold for ₹1,599.

Contribution = 1,599 - 890        = 709
Units        = 50,000 / 709        = 70.5 -> 71 units
Revenue      = 71 x 1,599          = 1,13,529
Margin       = 709 / 1,599 x 100   = 44.3%

Seventy-one units a month covers the fixed costs. Unit seventy-two is the first that earns.

Notes and limits

  • Fixed and variable costs must cover the same period. Monthly fixed costs give a monthly break-even volume.
  • Marketplace commission is variable, not fixed — it scales with sales. Photography and listing setup are fixed.
  • Returns raise the effective variable cost. In a category with a 10% return rate, your real contribution per unit is lower than this calculation shows.
  • Break-even is a floor, not a target. It tells you where losses stop, not where the business works.

What this calculation assumes

  • Fixed costs and the sales period are the same period.
  • Variable cost per unit is constant across volumes.
  • All figures exclude GST.

Frequently asked questions

What is contribution per unit?

The selling price minus the variable cost of that unit. It is what each sale contributes towards the fixed costs. Once total contribution equals fixed costs, you have broken even.

Why does the calculator say break-even is impossible?

Because your selling price is at or below your variable cost per unit. Each sale contributes nothing towards fixed costs, or actively adds to the loss, so no volume covers them. Raise the price above the variable cost, or reduce the cost.

Is marketplace commission a fixed or variable cost?

Variable. It is charged per sale, so it scales with volume and belongs in the per-unit cost. Fixed costs are the ones you pay whether or not you sell anything.

Should I include GST in these figures?

No. GST is collected on behalf of the government and passed on, so it is neither revenue nor cost. Use pre-tax figures throughout.

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