Break-even price calculator for online sellers
Use this seller-specific break-even price calculator to determine how many units you need to sell after marketplace fees, payment processing, VAT and product costs.
| Fixed Monthly Costs (£) | |
|---|---|
| Cost Per Unit (£) | |
| Marketplace Fees (%) | |
| Payment Processing (%) | |
| VAT (%) | |
| Desired Monthly Profit (£) |
How Many Sales Do You Need to Break Even?
Most ecommerce sellers underestimate how fees affect break-even. It is not just product cost. Etsy, eBay and Amazon all take a percentage. Payment processors take another cut. VAT reduces what remains.
Break Even After Fees
True break-even means covering:
- Fixed monthly costs (ads, software, subscriptions)
- Cost per unit
- Marketplace fees
- Payment processing fees
- VAT
- Your target profit
If your profit per unit after fees is low, required sales volume rises sharply.
Ecommerce Break Even Point Explained
Formula:
Break-even units = (Fixed Costs + Desired Profit) ÷ Net Profit Per Unit
Net profit per unit = Sale price minus unit cost minus percentage fees and VAT.
If you are unsure how to set price properly, read: How to Price Products for Profit
Platform-Specific Impact
Different platforms shift your break-even:
Higher fees = more units required to survive.
Frequently Asked Questions
How do I calculate break-even for Etsy or eBay?
Calculate your profit per unit after all fees and divide your fixed monthly costs by that number.
What increases my break-even point?
Higher marketplace fees, rising ad spend and low margins increase required sales volume.
Is break-even the same as profit?
No. Break-even means covering costs. Profit starts after that point.
Should I include VAT in break-even?
If VAT applies to your sales or fees, include it to avoid underestimating required revenue.