Break-Even Calculator for E-commerce Products: Units to Sell and Minimum Price in Rupees

Your break-even point is the number of units at which contribution from sales covers your fixed costs: break-even units = monthly fixed costs ÷ (price − variable cost per unit). Variable cost means everything that rises with each sale: product, marketplace fees, shipping, packing, returns and ads. Amazon's marketing ROI guide warns that leaving relevant costs out distorts the picture, and lists ad spend, staff time and wages, production, overhead and creative costs. The calculator below does the sums in rupees, as of November 2026.

Which numbers go in, and where do they come from?

No default here is a market rate. They describe an example product at ₹799 excluding GST, so overwrite them. Two things are sourced. First, Amazon defines gross profit as total revenue minus cost of goods sold. Second, Amazon.in set a zero referral fee for products under ₹1,000 across 1,800+ categories from 16 March 2026. The ROI guide itself does not give a break-even formula, so the break-even maths on this page is standard accounting, not an Amazon method.

Break-even calculator

The formula, with a worked example

Use the placeholders. Variable cost per unit is ₹300 product + ₹120 fees + ₹50 shipping + ₹25 returns + ₹80 ads = ₹575. Contribution is ₹799 − ₹575 = ₹224 per unit, or 28%.

Fixed costs are ₹1,50,000 a month. Break-even units = 1,50,000 ÷ 224 = 670 units (rounded up). Revenue at that point is about ₹5.35 lakh excluding GST. For a ₹50,000 profit goal, you need (1,50,000 + 50,000) ÷ 224 = 893 units.

If you expect only 800 units, profit is 224 × 800 − 1,50,000 = ₹29,200. The minimum price that breaks even at 800 units is ₹575 + 1,50,000 ÷ 800 = ₹762.50. That assumes fees do not change with price, which is not true when fees are a percentage of price. If your fees are a percentage, use the Amazon seller fee calculator guide or the Flipkart seller calculator to recompute the fee at the new price.

Which costs people forget

• Returns and RTO. A returned unit may come back damaged, or not at all. See reducing returns and RTO.
• Ads. Amazon says ACoS must stay below profit margin to stay profitable. The ads cost per unit above is your ACoS times price, so ₹80 on ₹799 is about 10%.
• Closing and weight fees. Amazon's seller guide lists Self-Ship closing fees of ₹20 under ₹300 and ₹26 for ₹300 to ₹500. Check your own fee line for the rest.
• GST. Use price and fees without GST so both sides match. This is general information, not tax advice; ask your chartered accountant how input credit applies to you.
• Payment timing. Cash tied up in stock and unpaid settlements does not show in break-even units but can still sink a month.

FAQ

How do I calculate break-even units for an online store? Divide monthly fixed costs by contribution per unit. Contribution per unit is price minus all variable costs: product, fees, shipping, returns and ads. With ₹1,50,000 fixed costs and ₹224 contribution, you need 670 units. The calculator above does this for any inputs.

Should ad spend be a fixed or variable cost? It depends on how you plan it. If you set ad spend as a percentage of sales (a target ACoS), treat it as variable. If you pay a fixed monthly amount regardless of sales, it is fixed. Mixing both double counts, so choose one and use it consistently.

What is the difference between break-even and break-even ACoS? Break-even units tell you how much to sell to cover all costs. Break-even ACoS is the ad cost ceiling for a single product, equal to its margin before ads. They use the same costs. See the ACoS vs TACoS vs ROAS guide.

Does the zero referral fee change my break-even? For products under ₹1,000 on Amazon.in, yes: the referral fee is zero since 16 March 2026 across 1,800+ categories. Update your fee input. Other fees such as closing and weight handling still apply, per Amazon's fee tables in Seller Central.

Is break-even revenue the same as break-even units times price? Yes, if price is constant. Multiply break-even units by price, excluding GST. If you discount in sales, use the average realised price instead, or revenue will be overstated.

How often should I redo this? Redo it whenever fees, price, ad spend or a major cost changes, and before any sale event where you plan deeper discounts. A quarterly review is a sensible minimum, though that is our suggestion, not a rule.

Run the numbers on every SKU

One product's break-even does not tell you which SKUs to push. If you want it done across a catalogue, Blooprint's catalogue and listing optimisation team works from per-SKU margins on Amazon.in, Flipkart and quick commerce.