Break-even Price
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Free Amazon Break-even Calculator
Find your break-even price or the units you need to sell to cover fixed costs.
Break-even price answers "what's the lowest I can price this and still not lose money on fees." Break-even units answers a different question: "how many do I need to sell to recoup a fixed investment," useful when budgeting a product launch's ad spend or initial inventory order.
Worked Example
Example (break-even price): Product cost $5.00, FBA fulfillment fee $3.50, referral fee 15%. Break-even price = ($5.00 + $3.50) / (1 − 0.15) = $10.00 — below that, referral fee + costs exceed revenue.
Formula
Break-even Price = (Product Cost + Fixed Fees) / (1 − Referral Fee %)Break-even Units = Fixed Costs / Contribution Margin per Unit
Frequently Asked Questions
What counts as "fixed costs" for break-even units?
Any one-time or period cost you're trying to recover — a product launch's PPC budget, an inventory prepayment, tooling costs, etc.