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Ecommerce Break-Even Calculator

Find the order volume at which an online store covers all its fixed costs.

About Ecommerce Break-Even Calculator

Advertising is a variable cost per order in ecommerce, so it belongs in contribution rather than fixed costs. If contribution per order is negative no volume ever reaches break-even, which is the case this calculation makes obvious. Stores frequently scale advertising while contribution per order is negative, which makes losses grow in direct proportion to revenue.

Formula

Ecommerce Break-Even

Break-even orders = fixed costs ÷ (order value × gross margin − advertising per order)

contribution per order
Gross profit on an order after the ad cost of winning it

Worked example

With the default values below, Ecommerce Break-Even Calculator returns Break-Even Orders per Month of 760. Change any input above and every figure here is recalculated in your browser.

Inputs used

Fixed costs per monthminimum 0
18,000
Average order valueminimum 0.01
85
Gross margin after product and shipping costaccepts 0–100 %
42 %
Advertising cost per orderminimum 0
12

Results

Break-Even Orders per Month
760
Break-Even Revenue per Month
$64,600.00
Contribution per Order
$23.70
Break-Even Orders per Day
25.3
Verdict
Break-even at 26 orders a day

Step by step

  1. 1Values used
  2. 2Ecommerce Break-Even
  3. 3Break-Even Orders per Month= 760
  4. 4Break-Even Revenue per Month= 64,600.00
  5. 5Contribution per Order= 23.70
  6. 6Break-Even Orders per Day= 25.3
  7. 7Verdict= Break-even at 26 orders a day

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Ecommerce Break-Even calculated?

Break-even orders = fixed costs ÷ (order value × gross margin − advertising per order) Advertising is a variable cost per order in ecommerce, so it belongs in contribution rather than fixed costs. If contribution per order is negative no volume ever reaches break-even, which is the case this calculation makes obvious.

Why does Ecommerce Break-Even matter?

Stores frequently scale advertising while contribution per order is negative, which makes losses grow in direct proportion to revenue.

What values do I need to enter?

This calculator takes 4 inputs: Fixed costs per month, Average order value, Gross margin after product and shipping cost, Advertising cost per order. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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