How do I calculate break-even?

Divide your startup costs by your profit per sale.

What costs should I include?

Your one-time startup costs, plus your ongoing monthly costs if you have them.

Is break-even the same as profit?

No. Break-even is when you stop losing money. Profit comes after.

What Is a Break-Even Point (and How to Find Yours)?

Before a business makes money, it has to earn back what you put in. That moment is your break-even point. Here's how to find it.

Last Updated: June 2026

Reviewed for current platform fees and pricing rules.

The simple formula

Sales to break even = your startup costs ÷ your profit per sale. Spend $300 to start and make $15 profit per sale, and you break even after 20 sales.

Why profit per sale matters most

It's profit per sale, not the price. Higher profit per sale means fewer sales to break even. So raising your margin (better pricing, lower costs) gets you there faster.

Add monthly costs too

If you pay monthly costs (subscriptions, ads, a shop fee), you also need enough sales each month to cover those before you make real profit. Count both one-time startup costs and ongoing monthly costs.

A worked example

Startup costs $300, profit per sale $15 → 20 sales to break even. If you also pay $30 a month in fees, you need about 2 more sales each month just to cover that.

Use it to set goals

Break-even is your first milestone. Once you pass it, every sale is profit. Use it to set a realistic early target instead of guessing.

Frequently asked questions

What is a break-even point?: The number of sales where your total profit equals what you spent. After it, you start making money.
How do I calculate break-even?: Divide your startup costs by your profit per sale.
What costs should I include?: Your one-time startup costs, plus your ongoing monthly costs if you have them.
Is break-even the same as profit?: No. Break-even is when you stop losing money. Profit comes after.

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