Break-Even Calculator for D2C Brands
Calculate exactly how many units you need to sell to cover your fixed costs — and how long it takes to get there at your current sales rate.
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Break-Even Analysis
Break-Even Units/mo
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Break-Even Revenue/mo
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Contribution Margin
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Days to Break-Even
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Enter your business details to calculate your break-even point
Want break-even analysis for your entire catalog?
ProfitLeaksAI automatically calculates break-even for every SKU and flags products that are structurally unprofitable.
Understanding Break-Even Analysis for D2C Ecommerce
What is break-even point?
The break-even point is the volume of sales at which your total revenue equals your total costs — zero profit and zero loss. Formula: Break-even units = Fixed costs ÷ (Price − Variable cost per unit). Below this point you're losing money; above it, every sale generates profit.
What is contribution margin?
Contribution margin = Selling price − Variable costs per unit. This is the amount each unit sale "contributes" toward covering fixed costs and generating profit. The higher your contribution margin, the fewer units you need to break even. For D2C brands, improving contribution margin (through better COGS, lower shipping, or higher prices) directly reduces your break-even point.
What counts as fixed vs. variable costs in D2C?
- Fixed:Shopify subscription, warehouse/3PL base fee, SaaS tools, team salaries, insurance, minimum ad spend
- Variable:COGS per unit, outbound shipping per order, payment processing fees, returns, ad spend per unit acquired