Use it when
You know your all-in fixed cost per unit and percentage selling fees and want the minimum selling price required to avoid a loss.
Pricing and margin tool
Break-even Price
Calculator
Find the minimum selling price that covers your supplier, import and selling costs, then see the price required for a target margin.
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Price from cost instead of guessing from supplier price alone.
Step 01 / Unit economics
Build your
cost floor.
All fixed costs below are per unit.
The pricing math
Percentage fees change
the break-even point.
If a marketplace or payment fee is charged as a percentage of selling price, simply adding that percentage to your fixed cost understates the price required to break even.
Break-even selling priceFixed cost / (1 − selling fee rate)
Price for target marginFixed cost / (1 − selling fee rate − target margin)
This is a planning calculation. Add advertising, returns, taxes and other variable costs when they materially affect your unit economics.
When to use this tool
Find the price floor
before adding profit.
Use another tool when
You already have a target profit margin and want the required selling price. Use the Target Selling Price Calculator for that forward-pricing question.
Open target selling price →Quick answers
Break-even price
FAQ.
Why can I not just add the marketplace fee percentage to cost?
Because a percentage fee is charged on the selling price, not on your cost base. Solving for price requires dividing fixed cost by one minus the fee rate.
Should advertising and returns be included?
Yes when they are material and reasonably estimable per unit. Leaving them out makes the break-even result too low.
Is break-even price the price I should actually sell at?
Not usually. It is the approximate floor that covers the entered costs. A commercial price should also account for profit, demand, competition and risk.