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E-commerce Break-Even Calculator

Calculate the break-even point for your online store. Factor in product costs, shipping, platform fees, and advertising to find your profitability threshold.

E-commerce businesses have unique cost structures — product costs, shipping, platform fees (Shopify, Amazon), payment processing, and advertising. This calculator helps you find exactly how many orders you need per month to cover all costs and start making profit.

Tips for E-commerce Break-Even

1

Include ALL variable costs per order: product cost + shipping + platform fees (2-15%) + payment processing (2.9%) + packaging

2

Customer acquisition cost (CAC) from ads is often the largest variable cost — track it carefully

3

Free shipping isn't free for you — factor it into your pricing or set a minimum order threshold

Frequently Asked Questions

What is a typical profit margin for e-commerce?
Net profit margins for e-commerce typically range from 5-20%. Fashion/apparel: 4-13%. Beauty/cosmetics: 15-25%. Electronics: 2-5%. High margins come from private label products, low competition, and strong branding.
Last updated: April 2026

Data sources: Standard mathematical formulas

For informational purposes only. Not financial, medical, or legal advice. Always consult a qualified professional for decisions affecting your finances or health.

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