Break-Even Point for E-commerce
Units, revenue, and ad-spend break-even for Shopify, WooCommerce & more
E-commerce Break-Even Formulas
Units
BE Units = Fixed Costs ÷ (Selling Price − COGS − Shipping − Fees)
Revenue
BE Revenue = Fixed Costs ÷ Gross Margin %
Ad Spend
BE Ad Spend = Fixed Costs ÷ ROAS
E-commerce Fixed vs Variable Costs
Fixed Costs (monthly)
- Shopify / WooCommerce fees
- App subscriptions
- Salaries & rent
- Storage & insurance
Variable Costs (per order)
- Product cost (COGS)
- Payment gateway fees
- Shipping & packaging
- Ad spend (if per order)
Real E-commerce Examples
1. Print-on-Demand T-shirt
Fixed: $2,000/mo
Price: $29
COGS: $12
Shipping: $5
Gateway fee: 3 %
Contribution = 29 − 12 − 5 − (29×0.03) ≈ $11.13
BE Units = 2,000 ÷ 11.13 ≈ 180 shirts
BE Units = 2,000 ÷ 11.13 ≈ 180 shirts
2. Dropshipping Gadget
Fixed: $3,500/mo
Price: $49
COGS: $22
Shipping: $7
Fee: 2.9 %
Contribution = 49 − 22 − 7 − (49×0.029) ≈ $18.58
BE Units = 3,500 ÷ 18.58 ≈ 189 units
BE Units = 3,500 ÷ 18.58 ≈ 189 units
3. Amazon FBA Book
Fixed: $1,200/mo
Price: $24.99
COGS: $8
FBA fee: $4.50
Ad ROAS: 4.0
Contribution = 24.99 − 8 − 4.5 = $12.49
Ad Cost = 24.99 ÷ 4 = $6.25
Net = 12.49 − 6.25 = $6.24
BE Units = 1,200 ÷ 6.24 ≈ 193 books
Ad Cost = 24.99 ÷ 4 = $6.25
Net = 12.49 − 6.25 = $6.24
BE Units = 1,200 ÷ 6.24 ≈ 193 books
E-commerce Break-Even Calculator
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Break-Even Revenue: $—
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