Break-Even Calculator
Find out exactly how many units you need to sell to cover your costs. Visualize your break-even point and test pricing scenarios.
Your Costs & Pricing
Break-Even Analysis
Cost vs Revenue Chart
Price Scenario Slider
Drag the slider to see how price changes affect your break-even point.
Understanding Break-Even Analysis
Break-even analysis tells you the exact point where your revenue covers all costs — both fixed and variable. Below this point, you're losing money on every sale. Above it, every additional sale contributes directly to profit.
For e-commerce merchants, understanding your break-even point is critical for pricing decisions, launch planning, and setting monthly sales targets. It answers the fundamental question: "How many units do I need to sell before I start making money?"
How to Lower Your Break-Even Point
There are three ways to reduce your break-even point: lower fixed costs (negotiate app subscriptions, reduce overhead), lower variable costs per unit (better supplier pricing, cheaper shipping), or increase your selling price. The scenario slider above lets you model how price changes affect your break-even.
The contribution margin — the difference between your selling price and variable cost — is the key lever. A higher contribution margin means each sale covers more of your fixed costs, so you break even faster.
Related Resources
- Cash Flow Forecasting for Ecommerce
- How to Calculate True Profit on Shopify
- Sunforce Cash Flow Forecasting
- True Profit Calculator
Frequently Asked Questions
How do you calculate the break-even point?
Break-even units = Fixed Costs ÷ (Selling Price - Variable Cost per Unit). The result tells you how many units you need to sell before you start making a profit.
What are fixed costs for an e-commerce store?
Fixed costs are expenses that don't change with sales volume: platform subscriptions (Shopify, WooCommerce hosting, etc.), app subscriptions, software tools, rent (if applicable), salaries, and insurance. These costs remain constant whether you sell 1 unit or 1,000.
What are variable costs per unit?
Variable costs change with each sale: cost of goods (COGS), shipping per order, payment processing fees, packaging materials, and any per-unit advertising cost.
Sun monitors your break-even in real-time
Sun tracks your break-even point automatically and forecasts your cash flow so you always know exactly where you stand.
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