A break-even analysis tells you the minimum price you need to charge or the minimum units you need to sell before your product becomes profitable. Knowing your break-even point is essential before launching any FBA product.
How do I calculate break-even price for Amazon FBA? +
Add up all your per-unit costs — product cost, shipping to Amazon, FBA fees, PPC spend and any other costs. The total is your break-even price. Any selling price above this generates profit. This calculator does it automatically.
How many units do I need to sell to break even? +
Break-even units equals your total fixed monthly costs divided by your profit per unit. For example if your monthly software costs are $100 and you make $5 profit per unit you need to sell 20 units per month just to cover fixed costs before making any real profit.
What safety margin should I aim for on Amazon? +
Aim for at least 20% above your break-even price. Amazon fees typically increase 3-5% each year. Competition can force price drops of 10-15%. A 20% safety margin absorbs these pressures and keeps your product profitable long term.
Should I include PPC costs in my break-even calculation? +
Yes — always include PPC in your break-even calculation. Many sellers forget ad spend and are shocked when their product loses money in practice. Your true break-even price must include all costs including advertising spend per unit.
What happens if my price falls below break-even? +
Every sale below break-even loses money. This happens when competitors undercut your price, Amazon raises fees, your supplier increases costs or you run heavy PPC. Use this calculator regularly to know exactly how much price flexibility you have before acting on promotions or coupons.