How to use the break-even order count calculator
Break-even order count is monthly fixed costs ÷ contribution margin per order. Each additional order contributes its margin toward covering fixed costs, so dividing fixed costs by that margin gives the minimum number of orders needed to stop losing money.
Contribution margin per order takes the average order value and subtracts product cost, payment and marketplace fees, shipping and packaging, and variable ad spend. Rent, salaries and other costs that do not move with order volume belong in the fixed costs field instead. Splitting the same cost across both fields pushes the break-even point higher than it really is.
When the contribution margin per order is 0 or below, selling more only deepens the loss and no break-even count exists, so the calculator stops and says so. Orders cannot be fractional, so the count is rounded up and the label says so only when rounding actually happened. The per-day figure divides by a 30-day month.
Frequently asked questions
A set monthly brand budget fits fixed costs, while performance advertising that grows with order volume fits the ad spend per order field. Matching how the spend actually behaves keeps the break-even point honest.
No. Returns and taxes are not modelled here. If returns are frequent, lowering the average order value to a net-of-returns figure is a rough way to account for them.