E-commerce break-even calculator
Break-even is the number of orders at which a store stops losing money. It sounds simple, but the answer depends on what you count as a cost of each order. This calculator includes product cost, payment fees, refunds and the cost of winning each customer, so the number is closer to what you will actually experience.
You need about 133 orders a month, or $5,320 in sales, to cover your fixed costs and profit target. Each order contributes $11.34, a 28.4% margin.
- Orders a month to break even
- 133
- Sales a month to break even
- $5,320
- Contribution per order
- $11.34
- Product and shipping$14.00
- Payment fees$1.46
- Refund losses$1.20
- Customer acquisition$12.00
- Contribution$11.34
Each order
- Selling price
- $40.00
- Product, packaging and shipping
- $14.00
- Payment fees
- $1.46
- Expected refund losses
- $1.20
- Cost to win the customer
- $12.00
- Contribution per order
- $11.34
- Contribution margin
- 28.4%
Every month
- Fixed costs
- $1,500
- Profit target
- $0.00
- Orders needed
- 133
- Sales needed
- $5,320
Platform fees are quoted in US dollars. Other currencies use approximate conversion rates, so treat them as estimates.
How this calculator works
Break-even is the first number worth knowing before you spend on a store, because it turns a vague goal into a monthly order count you can check against reality. The calculator covers fixed monthly costs, the selling price, variable costs per order (product, packaging and shipping), payment fees, refunds, the cost to win a customer and an optional monthly profit target. It shows the orders and sales needed per month, the contribution per order and the contribution margin. It does not model tiered pricing or seasonal sales.
The steps
- Subtract product, packaging and shipping, payment fees and the expected refund loss from the selling price.
- Subtract the cost to win the customer per order. What remains is the contribution per order.
- Add fixed monthly costs to the profit target.
- Divide that by the contribution per order and round up for orders per month. Multiply by the price for sales per month.
Assumptions
- Every order has the same price and costs.
- The cost to win a customer is an average over all orders, including returning customers.
- Refunds are lost sales that still cost you the product.
- Fixed costs stay fixed at every volume, which is rarely exactly true.
Two worked examples
A small store with a profit target
Each order contributes $21.46. To cover $800 of fixed costs and a $1,000 monthly profit you need 84 orders, which is $4,620 in sales.
Each order
- Selling price
- $55.00
- Product, packaging and shipping
- $20.00
- Payment fees
- $1.90
- Expected refund losses
- $1.65
- Cost to win the customer
- $10.00
- Contribution per order
- $21.46
- Contribution margin
- 39%
Every month
- Fixed costs
- $800
- Profit target
- $1,000
- Orders needed
- 84
- Sales needed
- $4,620
Ads eat the margin
Each order contributes only $1.93, so break-even needs 778 orders a month.
Each order
- Selling price
- $30.00
- Product, packaging and shipping
- $12.00
- Payment fees
- $1.17
- Expected refund losses
- $0.90
- Cost to win the customer
- $14.00
- Contribution per order
- $1.93
- Contribution margin
- 6.4%
Every month
- Fixed costs
- $1,500
- Profit target
- $0.00
- Orders needed
- 778
- Sales needed
- $23,340
Costs people forget
- Your own pay. If fixed costs leave out what you pay yourself, break-even is lower than it should be.
- Returns shipping. Free returns cost postage both ways. Include them in refunds or variable costs.
- Discounts. Sales and codes lower the effective price. Use the average price after discounts.
- Payment fees on shipping. Fees apply to the whole payment, including shipping charged to the buyer.
- Seasonal swings. A monthly break-even hides slow months. Check against your lowest months.
- Stock and cash timing. You pay suppliers before you are paid. Our runway calculator shows that.
Frequently asked questions
What is break-even?
The monthly order count at which contribution from orders equals fixed costs and the profit target.
What is contribution per order?
The price minus all costs that change with each order, including customer acquisition.
What should I include in fixed costs?
Platform, apps, software, insurance and any pay you take.
Why does the result say it never breaks even?
Each order loses money before fixed costs. Raise the price or cut variable costs.
How do I find my customer acquisition cost?
Divide advertising and marketing spend by the orders it produced.
Can I use this for services or digital products?
Yes, with zero shipping and product cost where they do not apply.
Related calculators
StartupCostLab provides estimates for planning only. Results depend on the numbers you enter and on fees that platforms change. This is not financial, tax or legal advice. Fee data last reviewed 10 November 2026; confirm current prices on each provider’s own site before you spend money.