Break-even calculator
Enter your monthly costs, your price and what each order costs you. The answer is in plain words, such as how many orders a day you need. The figures are typical for a clothing seller. Replace them with yours.
Orders a day to break even
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Orders a month
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You keep on each order placed
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Averaged over delivered and returned.
On a delivered parcel
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You lose on a returned parcel
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Fixed costs a month
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If more parcels come back
Orders a day you need at each return rate.
| Returned | Orders a day |
|---|---|
| 0% | — |
| 10% | — |
| 20% | — |
| 30% | — |
| 40% | — |
Know your number? Now get the orders.
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What is a break-even point?
It is the number of orders at which what you earn equals what you spend. Below it you lose money for the month. Above it, every order adds to your profit.
What counts as a fixed cost?
Costs you pay whether you sell ten orders or a thousand: shop or workshop rent, salaries, a monthly ad budget, software and tools. Costs that grow with each order, such as the product, packaging and courier, go in the per-order boxes.
How are returned parcels counted?
A delivered order earns the price plus any delivery you charge, minus the product, packaging and courier. A returned one loses the packaging, the courier charge and any return fee. The tool mixes the two using your return percentage, so a high return rate raises the number of orders you need.
Why does the tool say I can never break even?
If each order earns nothing or loses money after costs, more orders only make the loss bigger. This happens when the price is below cost, or when almost every parcel comes back. Raise the price, cut the cost or lower the returns first.
How many days should I enter?
Enter the days you take orders in a month. Use 30 if you sell every day, or 26 if you close on Sundays. The daily figure is the monthly figure divided by those days.
Does this include ad spend per order?
Put a fixed monthly ad budget in the fixed costs. If you pay for ads per sale, check it with the ad break-even calculator, which finds the most you can spend to get one order.