# Break-even calculator

> Free ecommerce break-even calculator. Find how many orders a month cover your fixed costs, the revenue that takes, and your profit at today's volume.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/break-even-calculator

Find how many orders a month you need before the business stops losing money, how many you need for a profit target, and where you stand today.

## What it calculates

Each order leaves a contribution: the order value minus its variable costs and the ad cost it took to get it. Fixed costs, such as salaries, rent and software, have to be covered by those contributions before anything is profit. The break-even point is the number of orders where total contribution equals fixed costs.

## Formula

```
Contribution = AOV − variable cost − ad cost per order
Break-even orders = ⌈Fixed costs ÷ Contribution⌉
Orders for a profit target = ⌈(Fixed + target) ÷ Contribution⌉
Margin of safety = (Current orders − Break-even) ÷ Current orders
```

## Worked example

Inputs:
- Fixed costs per month: USD 8,000
- Average order value: USD 60
- Variable cost per order: USD 28
- Ad cost per order: USD 14
- Orders this month: 450
- Monthly profit target: USD 3,000

Results:
- Break-even orders per month: 445
- Break-even orders per day: 14.83
- Break-even revenue: USD 26,700
- Orders for your profit target: 612
- Profit at your current orders: USD 100
- Margin of safety: 1.1%
- Contribution per order: USD 18

## What changes the result

Average order value at five values; every other input as in the example.

| Average order value | Break-even orders per month | Profit at your current orders |
| --- | --- | --- |
| USD 48 | 1,334 | -USD 5,300 |
| USD 54 | 667 | -USD 2,600 |
| USD 60 (example) | 445 | USD 100 |
| USD 66 | 334 | USD 2,800 |
| USD 72 | 267 | USD 5,500 |

## How to read the result

If contribution per order is zero or negative, there is no break-even point. More orders only lose more money, so fix price, cost or ad cost first.
Margin of safety tells you how far orders can drop before you lose money.
Use the same period for every number: a month of fixed costs with a month of orders.

## Questions

**What counts as a variable cost per order?**
Anything that grows with each order: product cost, packaging, shipping, payment fees and COD collection fees. Ad cost is entered separately so you can see its effect.

**What are fixed costs in ecommerce?**
Costs you pay whether you sell or not: salaries, rent, software subscriptions, agency retainers and loan payments.

**How do I lower my break-even point?**
Raise contribution per order (higher price, lower product or shipping cost, cheaper ads) or cut fixed costs. Contribution usually moves the number faster.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads order value and product cost from Shopify, ad cost from your ad accounts and fixed costs you enter in Finance, and shows profit for the month so far. Analify reads 5 of these 6 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/break-even-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools