Hub/Finances/Calculate Break-Even Point
Task IntentFinances

Calculate Break-Even Point

Determine your store break-even point in units and revenue, and model scenarios for different pricing and cost structures.

What This Sidekick Query Does

Determine your store break-even point in units and revenue, and model scenarios for different pricing and cost structures.

Prompts

Copy, adapt, and run this directly in Shopify Sidekick.

Help me calculate the break-even point for my Shopify store:

Fixed Costs (Monthly):
List all costs that stay the same regardless of sales volume:

  Shopify plan subscription: [AMOUNT]
  App subscriptions total: [AMOUNT]
  Rent or workspace costs: [AMOUNT]
  Salaries and payroll: [AMOUNT]
  Insurance: [AMOUNT]
  Software tools and services: [AMOUNT]
  Loan or debt payments: [AMOUNT]
  Other fixed costs: [LIST WITH AMOUNTS]
  Total fixed costs: (calculated)


Variable Costs (Per Order):
List costs that change with each sale:

  Average product cost (COGS per unit): [AMOUNT]
  Payment processing fee per order: [PERCENTAGE + FLAT FEE]
  Shipping cost per order (average): [AMOUNT]
  Packaging materials per order: [AMOUNT]
  Marketplace or channel fees: [PERCENTAGE IF APPLICABLE]
  Returns and refunds allowance: [PERCENTAGE OF ORDERS]
  Other variable costs: [LIST WITH AMOUNTS]
  Total variable cost per order: (calculated)


Revenue Assumptions:

  Average selling price (ASP) or average order value: [AMOUNT]
  Average units per order: [NUMBER]
  Average discount rate applied: [PERCENTAGE]


Break-Even Calculations:

  Contribution margin per order = AOV - variable costs per order
  Break-even orders = total fixed costs / contribution margin per order
  Break-even revenue = break-even orders x AOV
  Break-even daily orders = monthly break-even / 30
  Current margin of safety (how far above or below break-even am I?)


Scenario Modeling:
Calculate break-even under different conditions:

  Scenario A: Price increase of [10]% with [5]% volume decrease
  Scenario B: COGS reduction of [15]% (new supplier or negotiation)
  Scenario C: Fixed cost increase of [AMOUNT] (hiring, new tool)
  Scenario D: Marketing spend increase of [AMOUNT] with [X]% revenue lift
  Scenario E: Custom scenario: [DESCRIBE YOUR SCENARIO]


Sensitivity Analysis:

  How does break-even change with each $1 increase in AOV?
  How does break-even change with each 1% reduction in COGS?
  At what discount level do I start losing money per order?
  Minimum viable order count to sustain current operations


Visual Output:

  Break-even chart showing costs, revenue, and intersection point
  Monthly P&L projection at break-even volume vs current volume
  Timeline: when will I reach break-even if growing at [GROWTH RATE]%?


Present all calculations clearly with formulas so I can update the numbers.

Expected Output

Determine your store break-even point in units and revenue, and model scenarios for different pricing and cost structures.

Tips to Improve Results

Copy the prompt above
Open Shopify Sidekick in your Shopify admin
Paste the prompt and replace the bracketed placeholders with your details
Review Sidekick's response and apply the suggestions