How to Use Break-Even Calculator - Complete Guide
The Break-Even Calculator helps you find the minimum selling price to avoid losses. This guide shows you how to use it effectively to set profitable prices.
What is Break-Even Price?
Break-even price is the minimum selling price at which your product neither makes a profit nor incurs a loss. It covers all costs including Amazon fees, product cost, and other expenses.
Step 1: Enter Product Costs
- Product Cost: Cost to manufacture or purchase
- Shipping Cost: Cost to ship to Amazon warehouse
- Other Costs: Packaging, labeling, etc.
Step 2: Select Marketplace & Category
Choose your marketplace and product category. This determines referral fees and other Amazon charges.
Step 3: Enter Product Specifications
- Weight & Dimensions: Affects FBA fees
- Expected Sales Volume: For accurate fee calculations
Step 4: Add Additional Costs
- PPC Advertising: Monthly ad spend
- Storage Fees: Monthly storage costs
- Returns: Expected return rate
Understanding Results
Break-Even Price
The minimum price to cover all costs. Selling below this price means you'll lose money.
Recommended Price
Price with your target profit margin (typically 20-30%). This is what you should actually sell at.
Best Practices
- Never price at break-even - always add profit margin
- Aim for at least 20-30% profit margin
- Account for all costs, including hidden fees
- Compare break-even prices across marketplaces
- Re-calculate when costs change
Try Break-Even Calculator
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