Chartered Financial Analyst with 15+ years experience in e-commerce strategy and small business finance.
Find your Shopify store’s breakeven point. Enter any three variables—Monthly Fixed Costs, Avg. Order Value, Variable Cost per Order, or Breakeven Orders—to solve for the fourth.
Shopify Breakeven Calculator
Shopify Breakeven Formula
The breakeven formula for a Shopify store finds the total number of orders (Q) you must sell each month for your total revenue to cover all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Order Value (P):
P = (F / Q) + V
Solve for Variable Cost per Order (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead. This includes your Shopify plan, app subscriptions, marketing budget, and any salaries.
- Avg. Order Value (P): Your total revenue divided by your total number of orders.
- Variable Cost per Order (V): The average cost directly tied to one order. This includes Cost of Goods Sold (COGS), shipping/fulfillment, and transaction fees.
- Breakeven Orders (Q): The total number of orders you need to process each month to reach $0 in profit.
Related Calculators
- E-commerce Breakeven Calculator
- Dropshipping Breakeven Calculator
- Retail Breakeven Calculator
- Ad Campaign Breakeven Calculator
What is a Shopify Store’s Breakeven Point?
A **Shopify Breakeven Point** is the exact number of orders (Q) your store must fulfill each month to cover all expenses. It’s the minimum sales volume required to pay for your fixed “overhead” costs (like your Shopify subscription) and the variable “per-order” costs (like your product cost and shipping).
**Fixed Costs (F)** are your consistent monthly overhead, whether you sell 1 item or 1,000. This is your Shopify plan fee, any paid app subscriptions (e.g., email marketing, reviews), web hosting, and any fixed marketing or salary expenses.
**Variable Costs (V)** are the costs incurred *only* when you make a sale. This includes the Cost of Goods Sold (COGS), packaging materials, shipping and handling expenses, and Shopify’s transaction fees (or credit card processing fees).
The **Contribution Margin** (P – V) is the profit from a single order that goes toward paying your fixed costs. If your Average Order Value is $75 (P) and your variable costs are $40 (V), your contribution margin is $35. This calculator finds how many $35 “profit chunks” you need to cover your total fixed costs.
How to Calculate Shopify Breakeven (Example)
Let’s calculate the breakeven point for a new Shopify store.
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Identify Monthly Fixed Costs (F):
Your Shopify Basic plan ($39), email marketing app ($20), and marketing budget ($300) total $359.
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Identify Avg. Order Value (P):
After a month of sales, you find your average customer spends $60 per order.
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Identify Variable Cost per Order (V):
You calculate that the average order costs $25 in product cost (COGS), $8 in shipping, and $2 in transaction fees, for a total of $35.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per order: $60 (P) – $35 (V) = $25.
Next, divide the fixed costs by this margin:
Q = $359 / $25 = 14.36 -
Conclusion:
You must get 15 orders (rounding up) each month to cover all costs. The 16th order of the month will be your first profitable sale.
Frequently Asked Questions (FAQ)
It depends. If you have a fixed monthly ad budget (e.g., $500/mo), it’s a **Fixed Cost (F)**. If you run ads based on a percentage of sales or a “cost per acquisition” (CPA), you should include the *average* ad cost per sale in your **Variable Cost (V)**.
They are very similar, but a dropshipping model typically has a $0 Cost of Goods Sold (COGS) *until* an order is placed. This calculator works for both, but is also suitable for businesses that buy and hold their own inventory.
In your Shopify Admin, go to Analytics > Reports. Run a report for the last 30 or 90 days. Take your **Total Sales** and divide it by the **Total Orders**. That number is your AOV (P).
Enter your (F) (e.g., $359), your (V) for a product (e.g., $35), and a *target* number of sales (Q) you want to make (e.g., 20). The calculator will solve for (P), telling you the *minimum average price* (e.g., $52.95) you must charge to hit your goal.