Amazon FBA Break-Even Calculator
Find out exactly how many units you need to sell each month to cover your fixed costs and start making profit.
Calculate Your Break-Even Point
What is Break-Even Analysis?
Break-even analysis tells you the minimum number of units you need to sell to cover all your costs. Below this number, you're losing money. Above it, every additional unit sold is profit.
For Amazon FBA sellers, this is especially useful when evaluating whether a product is viable, setting monthly sales targets, or deciding whether to continue selling a slow-moving product.
How to Calculate Break-Even
Contribution Margin = Selling Price - Variable Cost per Unit
Break-Even Units = Fixed Costs ÷ Contribution Margin
Break-Even Revenue = Break-Even Units × Selling Price
Example: Your monthly fixed costs are $2,000 (software, storage, insurance). You sell a product for $30 with $18 in variable costs (COGS + Amazon fees + shipping). Contribution margin = $12. Break-even = $2,000 ÷ $12 = 167 units/month ($5,010 in revenue).
Understanding Your Results
Compare your break-even units to your current monthly sales. If you're selling well above break-even, the product is healthy. If you're near break-even, small changes in costs or pricing could flip you into a loss.
The daily units metric helps you set realistic targets. If you need 10 units/day to break even and your product listing is averaging 3/day, you know exactly the gap you need to close.
Frequently Asked Questions
Fixed costs are expenses that don't change based on the number of units sold. For FBA sellers, this typically includes software subscriptions (inventory tools, repricing, PPC management), monthly storage fees, business insurance, virtual assistant salaries, and any fixed overhead like office space or PO Box rental.
Variable costs increase with each unit sold. For FBA sellers, this includes the product cost (COGS), Amazon referral fee (typically 15%), FBA fulfillment fee, inbound shipping cost per unit, and prep/labeling fees per unit.
Contribution margin is the amount each unit sale contributes toward covering your fixed costs and generating profit. It's calculated as selling price minus variable cost per unit. Once you've sold enough units for the total contribution margin to cover fixed costs, you've hit break-even.
If variable costs exceed the selling price, your contribution margin is negative, meaning you lose money on every unit sold regardless of volume. You must either increase the selling price, reduce variable costs, or discontinue the product. Selling more units only increases the loss.
If your ad spend is relatively fixed per month (a common approach), include it in fixed costs. If it scales with sales, estimate the average ad cost per unit and include it in variable costs. Either way, advertising increases your break-even point.
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