Break-even calculator

Break-even price calculator

Find the lowest sale price that covers your costs. This is useful before accepting offers, running discounts, clearing stock, or paying for promoted listings.

Fixed costs before percentage fees $0.00
Contribution after percentage costs 0.0%
Break-even item price $0.00
Price for target margin $0.00

What break-even means

Break-even is not a recommended selling price. It is the point where the sale stops losing money. If you sell below break-even, the order takes cash out of the business. If you sell at break-even, you have still not paid yourself or created profit for new stock.

The break-even price is still useful because it creates a floor. A seller who knows the floor can accept offers with confidence, reject bad discounts quickly, and avoid clearing stock at a price that creates hidden losses.

Break-even price = fixed costs / (1 - percentage fees - return reserve) - shipping charged

The formula removes the portion of every order that will be taken by percentage costs. If the platform and return reserve together take 15 percent, only 85 percent of the order is available to cover fixed costs such as item cost, postage, packaging, and transaction fees.

When to use break-even pricing

Break-even pricing helps in situations where speed matters. For example, you might receive a buyer offer while away from your desk, or you might want to mark down slow inventory before a new season. Instead of guessing, you can enter the product cost, shipping cost, fee percentage, and return reserve to see the minimum item price that keeps the sale from going negative.

It is also helpful when comparing shipping strategies. If you charge the buyer separately for shipping, the item price needed to break even may be lower. If you offer free shipping, the item price must carry the shipping cost. Neither method is automatically better. The right answer depends on search results, buyer expectations, and the way your marketplace ranks listings.

  • Use break-even as your minimum acceptable price, not your goal price.
  • Use target margin for normal listings where you want profit and room for returns.
  • Update costs when postage, supplier prices, or marketplace fees change.
  • Check competitor prices after calculating, because math must still meet the market.