How to calculate break-even in an online store

In short: Break-even orders per month = fixed costs ÷ contribution margin per order. For advertising: break-even ROAS = basket ÷ contribution margin.

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Step 1: contribution margin

It is what remains per order after cost of goods, shipping, fees and returns, before advertising and fixed costs.

Step 2: fixed costs

Shop subscription, apps, tools, salaries, rent. Everything that is due even at zero orders.

Step 3: divide

Example: fixed costs €3,000, contribution margin €20: you need 150 orders a month. If advertising is added, the margin per order drops by the ad cost.

Frequently asked questions

What is the contribution margin?

The amount per sale that remains after variable costs and is meant to cover fixed costs.

Work it out with your numbers

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ROAS and Break-even Calculator

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