Pick a mode. Find the exact point your business covers its costs.
Mode
Units: how many you must sell to cover fixed costs.
Inputs
COGS + shipping + processing per order
Rent, salaries, software, etc.
Margin after all variable costs
After COGS + shipping + processing — but before ad spend
Profit per order before commission
Platform fees, manager time
Break-even
Units to break even—
About this calculator
Break-even is the line that separates "this business is making money" from "this business is losing money". Knowing exactly where it sits is the most important number in your P&L for one simple reason: until you cross it, more revenue does not mean more profit — it usually means more loss. Most failing DTC brands are operating below their break-even point and confusing growing top-line revenue for actual progress. Below break-even, scaling spend makes the leak bigger.
There are five distinct break-even questions an ecommerce operator might be asking, and they have different answers. Units tells you how many products you need to sell to cover fixed costs at current pricing. Revenue tells you the dollar revenue threshold (useful when you have multiple SKUs at different prices). ROAS tells you the minimum marketing efficiency at which the next ad dollar still earns positive contribution. Dropshipping models the first profitable order including all the leak points dropshippers underestimate (supplier markup, shipping, processing, ads). Affiliate tells you the minimum monthly sales volume to cover both commission payouts and program overhead.
All five modes use the same underlying contribution-margin framework — the differences are just about which inputs you have available and what answer you need. If you are running a budget meeting, "Break-Even Revenue" is the relevant number. If you are deciding whether to scale Meta spend, "Break-Even ROAS" is the right cut. If you are launching a new SKU, "Break-Even Units" tells you how many units you need to ship before you stop losing money on the launch.
Break-even is the point at which your total revenue equals your total costs — you are not making money, but you are not losing it either. Below break-even you operate at a loss; above it you generate profit. For ecommerce there are several distinct break-even questions depending on whether you are looking at units, revenue, marketing efficiency (ROAS), or per-channel profitability.
What is the break-even formula?
Break-Even Units = Fixed Costs / (Price per Unit − Variable Cost per Unit). Break-Even Revenue = Fixed Costs / Contribution Margin %. Break-Even ROAS = 1 / Contribution Margin %. The right one to use depends on your context — see the mode descriptions on this page.
What is the difference between break-even and breakeven ROAS?
Break-even (units or revenue) tells you how much you need to sell to cover all your costs — fixed and variable. Break-even ROAS tells you the marketing efficiency you need to be at on the next ad dollar to not lose money on it. They answer different questions: the first is "should I be in this business?", the second is "should I spend the next $100 on ads?".
Why does break-even matter for ecommerce?
Most failing DTC brands are operating below their break-even point and growing revenue while losing money — what looks like growth is actually the leak getting bigger. Knowing your break-even gives you a hard floor: until you hit it, scaling spend makes things worse, not better. Above it, scaling makes things better.
How often should I recalculate break-even?
Whenever your unit economics shift materially: a price change, a COGS increase from a supplier, a new shipping carrier, a fee schedule update, or a new channel mix. For most DTC brands quarterly is appropriate; brands during high-velocity growth or BFCM should recheck monthly.