Chartered Financial Analyst specializing in e-commerce and retail supply chains.
Determine how many items (e.g., t-shirts, mugs) your Print on Demand (POD) store must sell each month to cover all costs. Enter any three variables—Monthly Fixed Costs, Avg. Sale Price, Variable Cost per Item, or Breakeven Units—to solve for the fourth.
Print on Demand Breakeven Calculator
Print on Demand Breakeven Formula
The breakeven formula for a Print on Demand (POD) business finds the number of items (Q) it must sell for total monthly revenue to equal all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Sale Price (P):
P = (F / Q) + V
Solve for Variable Cost per Item (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead (e.g., Shopify/Etsy fees, design software subscriptions, fixed ad spend).
- Avg. Sale Price (P): Your average revenue per item sold (what the customer pays you).
- Variable Cost per Item (V): The direct costs per item sold (e.g., the POD provider’s price for the blank item, printing, and shipping).
- Breakeven Units (Q): The total number of items you need to sell to reach $0 in monthly profit.
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What is a Print on Demand Breakeven Point?
A **Print on Demand (POD) Breakeven Point** is the number of items (like t-shirts, mugs, or posters) your store must sell each month to cover your total costs. This is the minimum sales volume you need to achieve to start being profitable.
**Fixed Costs (F)** are your monthly “overhead.” These are the expenses you pay regardless of how many items you sell. This includes your e-commerce platform fees (e.g., Shopify plan, Etsy Pro), design software subscriptions (e.g., Adobe, Canva Pro), and any fixed monthly marketing budget.
**Variable Costs (V)** are the costs tied *directly* to each item you sell. For POD, this is typically the “all-in-one” price your provider (like Printify or Printful) charges you, which includes the blank product, the printing, and the shipping to the customer. Transaction fees from Stripe or PayPal also go here.
The **Contribution Margin** (P – V) is the profit from a single item that goes toward paying off your large monthly fixed costs. This calculator finds how many sales are needed to cover your total overhead. Every item sold *after* this point generates your net profit.
How to Calculate POD Breakeven (Example)
Let’s calculate the breakeven point for a t-shirt store.
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Identify Monthly Fixed Costs (F):
The store has $150 in monthly Shopify fees and ad spend.
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Identify Avg. Sale Price (P):
The t-shirt sells for $25.00 (including shipping).
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Identify Variable Cost (V):
The POD provider charges $15.00 (for the shirt, print, and shipping).
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per shirt: $25.00 (P) – $15.00 (V) = $10.00.
Next, divide the fixed costs by this margin:
Q = $150 / $10.00 = 15 -
Conclusion:
The store must sell 15 t-shirts each month to cover all costs and start making a profit.
Frequently Asked Questions (FAQ)
You should add any per-sale transaction fees (e.g., 2.9% + $0.30) to your **Variable Cost (V)**. For a $25 item, this might be ~$1.03, making your (V) $16.03 instead of $15.00.
You must use an **average** for your Sale Price (P) and Variable Cost (V). Calculate your average contribution margin `(P – V)` across all products to get the most accurate result.
If you have a fixed daily/monthly budget (e.g., “$5/day”), it’s a **Fixed Cost (F)**. If you are paying *per conversion* (Cost Per Acquisition), it is a **Variable Cost (V)**.
This is the perfect tool for pricing. Set your (F) (e.g., $150), (V) (e.g., $15), and a realistic sales goal (Q) (e.g., 10 sales/mo). Solve for (P) to find your minimum price: `P = ($150 / 10) + $15 = $15 + $15 = $30`. You must charge $30 on average.