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ShipMargin

Break-even price calculator

Find the exact price where profit hits zero after every fee, and the price you need for a target margin. Solved iteratively, because percentage fees move with price.

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Your unit economics
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Break-even price
$20.00

Below this you lose money on every sale. You are currently $20.00 above it.

Price for 25% margin
$28.33
Profit at current price
$17.00
Max landed cost at target
$19.00
Current margin
42.5%
Profit across price

The line bends because percentage fees grow with the price.

-$10.88$18.70$48.28break-even$12.00$72.00Price

Questions people ask about this

How do you calculate a break-even price?

You cannot simply add your costs, because the percentage fees change as the price changes — a higher price means a higher referral fee, which means you need a higher price again. This calculator solves it iteratively, converging on the exact point where profit is zero.

Why is my break-even price higher than my costs?

Because a chunk of the price leaves before you see it. On a marketplace taking 15% plus a fulfilment fee, roughly a fifth of every price increase goes straight back out. That is why cutting price to match a competitor rarely works out the way the spreadsheet suggests.

Where these numbers come from

This calculator uses arithmetic rather than published rates — every figure comes from the values you enter. See the methodology page for the formulas behind it.

Page last reviewed . Spotted something out of date? Tell us — corrections are published with the date they were made.