Break-even calculator for a online store
With $3,500 of fixed costs a month, a price of $28.00 and $9.00 of cost per sale, you break even at 185 sales a month ($5,180 of revenue).
Free, runs in your browser, nothing is sent anywhere. Move the sliders to try your own numbers.
The numbers for these inputs
| Sales | Revenue | Total cost | Profit |
|---|---|---|---|
| 0 | $0 | $3,500 | -$3,500 |
| 37 | $1,036 | $3,833 | -$2,797 |
| 74 | $2,072 | $4,166 | -$2,094 |
| 111 | $3,108 | $4,499 | -$1,391 |
| 148 | $4,144 | $4,832 | -$688 |
| 185 | $5,180 | $5,165 | $15 |
| 222 | $6,216 | $5,498 | $718 |
| 259 | $7,252 | $5,831 | $1,421 |
| 296 | $8,288 | $6,164 | $2,124 |
| 333 | $9,324 | $6,497 | $2,827 |
| 370 | $10,360 | $6,830 | $3,530 |
How it works
Every sale leaves a margin: the price minus the variable cost of making and delivering it. Fixed costs (rent, software, salaries) do not change with sales, so you break even when margin x number of sales equals fixed costs.
Break-even sales = fixed costs / (price - variable cost), rounded up to a whole sale. Below that number you lose money; above it, every extra sale adds one margin to profit.
The chart shows revenue and total cost as lines; they cross at the break-even point. The table lists sales, revenue, total cost and profit around it.
Common mistakes
- Leaving out your own pay: if the business must also pay you, add it to the fixed costs.
- Treating a cost that grows with sales (payment fees, packaging, shipping) as fixed.
- Using the list price when most sales are discounted.
- Assuming demand: break-even tells you the target, not whether customers will buy that many.
Questions
How many sales do I need to break even?
185 a month, or $5,180 of revenue, with the numbers above.
What is my margin on each sale?
$19.00, which is 67.86% of the price.
What happens if I raise the price?
Each extra $1 of price adds $1 of margin per sale and lowers the break-even number. Move the price slider to see how fast it falls.
Which costs are fixed and which are variable?
Fixed: rent, subscriptions, salaries, insurance. Variable: ingredients, materials, packaging, shipping and payment fees, which grow with each sale.
Does break-even include tax?
No. It is before tax and before any pay you take from the business.
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