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Shopify Break Even Calculator
The break even calculator helps you quickly figure out how many sales you need to cover your costs. Enter your product cost, selling price, and fixed expenses to instantly see your break even point.
What is Break-Even Point?
The break-even point is when your total revenue equals your total costs. In simple words, it’s the number of products you need to sell so you don’t lose money.
01
Below break even: You are at a loss
02
At break even: You cover all costs
03
Above break even: You are in profit
What is Break-Even in Shopify?
Break even means your revenue from a sale covers your product cost, shipping, and ad spend, leaving you with zero profit and zero loss. Once you know this point, every dollar spent above it can be considered profit.
For example:
Product Cost: $15
Selling Price: $35
Other Costs (shipping, packaging): $5
Break Even ROAS = 2.0
This means you need $2 in sales for every $1 in ad spend to avoid losing money.
Sets Ad Spend Limits
You know the max you can spend per customer.
Helps with Pricing Decisions
If your break-even ROAS is too high, you might need to adjust your prices.
Protects Cash Flow
revents overspending on campaigns that are not sustainable.
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