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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