hasMin":false,"hidden":false,"helpText":"The cost directly associated with producing or acquiring and selling one unit (e.g., COGS, shipping, transaction fees).","maxValue":null,"minValue":null,"required":true,"placeholder":"e.g., 20","defaultValue":"20","labelOutside":true},"rowId":"Mkb5UnG"},{"key":"vSPg","type":"text","props":{"text":"

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Break-Even Analysis Results

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Contribution Margin Per Unit:

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$@contribution_margin_per_unit

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Break-Even Point (Units):

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@break_even_units

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Break-Even Point (Revenue):

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$@break_even_revenue

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How to calculate Break-Even Point?

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The break-even point is the stage at which total costs and total revenue are equal, meaning there is no net loss or gain. In other words, you've covered all your expenses and are ready to start making a profit.

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The core formula for break-even point in units is:

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Break-Even Point (Units) = Fixed Costs / (Selling Price Per Unit - Variable Costs Per Unit)

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Using the Shopify Break-Even Point Calculator: an example

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Let's consider a Shopify store selling custom t-shirts. Here's how to calculate their break-even point:

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Step-by-step calculation:

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Fixed Costs: $500 (Shopify subscription, app fees, marketing tools)
Product Selling Price: $25 per t-shirt
Variable Costs Per Unit: $10 (cost of blank t-shirt, printing, packaging, transaction fees)

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First, calculate the Contribution Margin Per Unit:

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Contribution Margin = $25 - $10 = $15

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Next, calculate the Break-Even Point in