XBKit·Universal

Break-Even Price Calculator

Find the minimum selling price to cover all your costs, and the price needed to hit your target profit margin.

Costs
$
$

Fixed fees: FBA fulfillment, shipping to warehouse, etc.

% of price

Variable fees: referral fee, payment processing, etc.

Target
%
Formula
Break-Even Price=(Unit Cost + Fixed Fees)÷(1 − Variable Fee Rate)
  • Variable fees deducted from revenue
  • Fixed fees paid per unit shipped
  • Target price uses same formula+ margin

How to Use

  1. 1

    Enter your cost of goods

    Input the total product cost per unit including manufacturing or purchase price, packaging, and inbound shipping.

  2. 2

    Add all variable fees

    Include marketplace fees, payment processing, and any per-unit fulfillment or shipping charges.

  3. 3

    Set your target margin

    Enter the minimum profit margin percentage you want to achieve. This determines your target selling price.

  4. 4

    Review break-even and target price

    The calculator shows the minimum price to avoid a loss (break-even) and the price needed to hit your target margin.

Frequently Asked Questions

What is a break-even price?

The break-even price is the minimum selling price at which you cover all costs and make exactly zero profit. Any price above break-even generates profit; any price below generates a loss.

What costs should I include in the break-even calculation?

Include: cost of goods (COGS), inbound shipping to warehouse, marketplace/platform fees, payment processing fees, fulfillment/outbound shipping, and any per-unit returns or refund allowance.

What profit margin is realistic for e-commerce?

Target margins vary by channel: Amazon FBA sellers typically aim for 20–30%, Shopify DTC stores for 30–50% before advertising, and Etsy sellers for 30–40% after all fees. Lower margins need high volume to be sustainable.

Should I include advertising costs in my break-even calculation?

Yes, if you rely on paid advertising to drive sales. Many sellers forget to factor in PPC or Meta ad spend, leading to apparent 'profit' that disappears when ad costs are accounted for.

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