Break-Even Price Calculator
The break-even price is the price at which you neither profit nor lose: the sum of unit cost and the per-unit share of fixed costs. It is the lower limit for your discount decisions.
Calculating…
Calculation formula
Fixed-cost share = Monthly fixed costs ÷ Monthly unit sales
How to interpret it?
Unit cost is what the product costs you. The fixed-cost share is the portion per product of expenses that do not depend on sales volume, such as rent, staff and subscriptions; you find it by dividing your monthly fixed costs by your monthly unit sales.
In practice, this figure means that going below it while discounting under campaign or competitive pressure means losing money with every sale. A discount decision made without knowing the break-even price grows volume while shrinking the business.
Limitations: what does this tool not calculate?
Marketplace deductions must also be added separately. If you do not include commission, shipping and return share in the unit cost, the real break-even price is higher.
The fixed-cost share is an estimate. As sales volume changes, the per-product share changes too.
Tax is not included. VAT and other obligations are outside this calculation.
Frequently asked questions
What is the break-even price?
The price at which you neither profit nor lose: the sum of unit cost and the per-unit share of fixed costs.
How do I find the fixed-cost share?
Divide your monthly fixed costs (rent, staff, subscriptions) by your monthly unit sales.
Can I go below the break-even price?
The more you sell, the more you lose. It should only be done as a deliberate, time-limited decision, such as clearing stock.
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Last updated: September 10, 2026