FEES & UNIT ECONOMICS

Ecommerce Break-Even Sales Calculator

Calculate the orders and revenue needed to cover fixed costs and hit a target profit, with contribution margin and order gaps.

Currency: USD only. Fixed costs and contribution must use the same period; contribution already subtracts variable costs.

Fixed costs, contribution and target

Fixed costs per periodRent, salaries, tools and overhead for the period.Contribution per orderAOV minus all variable costs, including ads and returns reserve.Target profitProfit above fixed costs for the period.Average order valueUsed to convert orders into revenue.Current ordersUse the same period for the gap.

Planning model. Fixed costs and contribution use the same period. Contribution subtracts all variable costs, including ads and a returns reserve. AOV is constant; taxes, financing and one-off costs are excluded.

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Orders and revenue needed

Orders for target profit

280Reachable. 280 orders produce $16,800.00 at the current AOV.

Revenue for target profit$16,800.00Target orders × AOV.

Break-even orders200Orders needed to cover fixed costs.

Break-even revenue$12,000.00Break-even orders × AOV.

Contribution margin41.7%Contribution ÷ AOV.

Gap to break-even+50Break-even orders minus current orders.

Gap to target+130Target orders minus current orders.

Target-profit scenarios

Orders and revenue needed as the profit target scales, with fixed costs and contribution unchanged.

Target profit	Orders	Revenue
$0.00	200	$12,000.00
$2,000.00	280	$16,800.00
$3,000.00	320	$19,200.00
$4,000.00	360	$21,600.00

How break-even sales are calculated

Break-even orders = fixed costs ÷ contribution per order, rounded up. Target orders = (fixed costs + target profit) ÷ contribution per order, rounded up. Revenue = orders × AOV. Contribution margin = contribution ÷ AOV. Gaps compare the required orders with current orders.

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Break-even sales: how many orders cover fixed costs?

Contribution per order has to cover fixed costs before the business earns anything. This calculator shows the orders and revenue needed to break even, the extra needed for a target profit, and the gap versus current orders.

Fixed costs versus variable costs

Fixed costs do not move with order volume: rent, salaried staff, software, insurance and base overhead. Variable costs move with each order: COGS, fulfillment, payment and platform fees, ads and a returns reserve.

Contribution per order is AOV minus variable costs. It is the money each order leaves to pay fixed costs and then profit. If contribution is zero, no number of orders can cover fixed costs.

The formula

Break-even orders = fixed costs ÷ contribution per order, rounded up. Target orders = (fixed costs + target profit) ÷ contribution per order, rounded up.

Revenue = orders × AOV. Contribution margin = contribution ÷ AOV. The gap compares required orders with the orders you already expect in the period.

Worked example

Fixed costs $5,000, contribution $25, target profit $2,000, AOV $60, current orders 150. Break-even orders are 5,000 ÷ 25 = 200. Target orders are 7,000 ÷ 25 = 280.

Break-even revenue is $12,000 and target revenue is $16,800. Contribution margin is 41.7%. The gap is 50 orders to break even and 130 orders to the target.

What changes the answer

A higher contribution per order lowers the order requirement. A higher fixed cost or profit target raises it. AOV changes revenue but not the order count, because orders are driven by contribution.

This is why discounting can be dangerous: it may raise order count while lowering contribution per order enough to push the break-even point further away.

When the target is unreachable

If contribution per order is zero or negative, every additional order adds no contribution or loses money. The calculator shows the target as unreachable instead of returning an infinite or negative order count.

A negative contribution can happen when ads, returns or fulfillment exceed the order's gross margin. Fix the unit economics before scaling volume.

How to use it

Use one period consistently: monthly fixed costs with monthly orders and monthly target profit. Include every fixed cost and a realistic returns reserve in variable costs.

Compare the target revenue with current revenue, then test a lower fixed cost or a higher contribution to see which lever closes the gap. For the price implied by a target volume, use the break-even price calculator.

Break-even references checked October 2026: Omni break-even · Calculator.net break-even · Shopify fixed and variable costs

What is break-even sales?+

The revenue or order count where contribution exactly covers fixed costs, leaving zero profit. Above it, contribution becomes profit; below it, the period loses money.

Why use orders as well as revenue?+

Revenue depends on AOV, but the operational constraint is usually orders or units. Showing both lets you compare the target with traffic, fulfillment capacity and current order volume.

Should ads be in contribution or fixed costs?+

If ad spend varies with orders, include it in variable costs so contribution is after ads. If it is a fixed monthly budget regardless of volume, treat it as a fixed cost and keep it out of contribution.

Why is the target unreachable when contribution is zero?+

With zero contribution, each order adds nothing toward fixed costs. No order count can cover them. The model returns a dash instead of infinity.

Does AOV change the break-even order count?+

No, if contribution stays the same. AOV changes the revenue required. If AOV changes because of price or mix, contribution per order likely changes too, which does move the order count.

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