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Breakeven Calculator

In one line: Know the exact number of units you must sell before a launch or promo turns a profit instead of a loss.

When to use

  • Before launching a new SKU, to set a realistic sales target
  • Before a promotion or coupon campaign, to confirm the discount still clears costs
  • When pitching a budget, to show the minimum volume that justifies spend

Inputs

Field Notes
Fixed cost Up-front costs that don't change with volume (tooling, listing fees, design)
Selling price Per-unit listing price on the target platform
Variable cost per unit Procurement, shipping, packaging, and commission allocated per unit

Outputs

  • Breakeven units — the minimum quantity to cover all costs
  • Breakeven revenue — the sales amount at that quantity
  • Margin of safety — how far your expected sales sit above breakeven

Steps

  1. Open https://www.niceggie.com/tools/breakeven
  2. Enter fixed cost, selling price, and variable cost per unit
  3. Breakeven units and revenue update instantly
  4. Enter your expected sales to read the margin of safety

Contribution margin is the real lever

Breakeven units = fixed cost ÷ (price − variable cost). The denominator is your contribution margin per unit. If it is under 20% of price, even a small dip in price or a fee increase can double your breakeven volume — protect that gap before you discount.

FAQ

What if my contribution margin per unit is zero or negative?

Then there is no breakeven — every unit sold deepens the loss. Raise the selling price, cut variable cost (renegotiate procurement, switch shipping lanes), or do not launch the SKU. The calculator will flag this as an unreachable breakeven.

How is margin of safety different from profit margin?

Profit margin measures money kept per sale. Margin of safety measures how much your sales volume can fall before you hit breakeven. A high profit margin with sales barely above breakeven is still fragile — both numbers matter.

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