MarginReality

Shopify Break-Even Calculator

Find out exactly how many sales you need to cover your costs — and how many more to hit your profit target.

Inputs
$3,000
$45
$20
$2,000
Results
Contribution Margin$25
Contribution Margin %55.6%
Break-Even Units120 units
Break-Even Revenue$5,400
To earn $2,000/mo200 units
Target Revenue$9,000

How It Works

Every product you sell has a fixed cost (rent, subscriptions) and a variable cost (product, shipping, fees). The break-even point tells you how many units you need to sell to cover both.

Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)

Example

A store with $3,000 monthly fixed costs, selling a $45 product with $20 variable cost:

  • Contribution Margin: $25 per unit (55.6%)
  • Break-Even: 120 units ($5,400 revenue)
  • To earn $2,000/month profit: 200 units ($9,000 revenue)

Frequently Asked Questions

What is the break-even point?

The break-even point is when your total revenue equals your total costs — you're not making money, but you're not losing it either. Every sale beyond that point is profit.

How do I calculate break-even for my Shopify store?

Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit). For example, if your monthly fixed costs are $3,000, your product sells for $45, and the variable cost is $20, you need to sell 120 units ($5,400) to break even.

What are fixed costs for a Shopify store?

Fixed costs are expenses that don't change with sales volume: Shopify plan ($29-299/month), apps and subscriptions, domain hosting, marketing retainer, rent (if you have a warehouse), and salaried employees.

What are variable costs for a Shopify store?

Variable costs scale with each sale: product cost (COGS), payment processing fees, shipping costs, packaging materials, and per-order marketing spend.

What is contribution margin?

Contribution margin is the amount each sale contributes toward covering fixed costs and generating profit. It's calculated as Price per Unit minus Variable Cost per Unit. A higher contribution margin means you need fewer sales to break even.

What is a good break-even point for a Shopify store?

It depends on your niche and pricing, but most healthy Shopify stores should be able to reach break-even within 50-200 units sold per month. If your break-even requires 500+ units, your margins may be too thin.