E-Commerce Break-Even Calculator

This version of break-even is built around how stores actually work: an average order value, variable costs as a percentage of the order (product, shipping) and a platform/payment take rate. It returns break-even in both orders and revenue.

Inputs

Monthly fixed costs

Average order value

Variable cost % of order

COGS + outbound shipping as % of order value.

Platform & payment fee %

Results

Break-even orders / month

113

Break-even revenue / month: $7,684.00
Contribution per order: $37.26
Orders per day needed: 3.8

Formula

Break-Even Orders = Fixed Costs ÷ (AOV × (1 − Variable % − Fee %))

FAQ

What if variable costs are a fixed amount per order?

Convert them to a percentage of AOV first (e.g. $18 shipping on a $60 AOV = 30%), or lower your AOV input to stress-test the worst case.

Should ad spend be a fixed or variable cost?

If ads scale roughly with orders, treat them as variable. If you run a flat brand budget, put them in fixed costs. Pick one and stay consistent.