Most Shopify merchants guess their break-even point — and get it wrong. Find yours in seconds, see how discounts change it, and protect your profit.
Free tool · No sign-up · Results in 5 seconds
Built by DealCraft — Shopify discount specialists
Enter your costs and pricing to find your break-even point
Rent, salaries, software, marketing
Average selling price
COGS: product cost + shipping + packaging
Units sold per month
Projections are estimates based on your inputs. Actual results vary by store, product mix, and market conditions. Fixed costs should include all expenses that don't change with sales volume.
Safe
Your store has a healthy buffer above break-even. Focus on scaling marketing to grow profits.
Break-Even Units
167
units/month
Break-Even Revenue
$8,350
per month
Current monthly profit:
+$4,000
at 300 units/month
Reach break-even with room to spare
You're 44% above break-even. DealCraft helps you protect that buffer while growing:
Volume Tier Discounts
"Buy 3+, save 15%" — incentivize larger orders to reach 167 units faster without discounting single items.
BOGO for Slow Movers
Clear dead stock with Buy-One-Get-One deals that don't erode margins on your bestsellers.
Min-Purchase Thresholds
Set minimum order values so discounts only apply when the cart is already profitable.
See how profit changes as you sell more units. The red line is break-even.
Share your Break-Even Score
Now that you know your break-even, set up discount rules that never sell below cost:
Break-even analysis is the foundation of profitable pricing. Master these concepts to make better business decisions.
Fixed costs stay the same regardless of sales (rent, software, salaries). Variable costs change with each unit sold (product cost, shipping, packaging). Your break-even point is where total revenue covers both types.
This is the money each unit contributes toward covering fixed costs. Formula: Price - Variable Cost. If you sell a product for $50 with $20 in variable costs, each sale contributes $30 toward your fixed costs.
Measures how far your current sales are above break-even. A 40% margin means you can afford a 40% sales drop before losing money. Below 20% is dangerous — one bad month puts you in the red.
Every discount raises your break-even point. A 20% discount doesn't just reduce profit — it forces you to sell more units to cover the same costs. Always calculate the volume lift needed before running a promotion.
Break-even analysis calculates the minimum number of units you need to sell to cover all your costs (both fixed and variable). For a Shopify store, fixed costs include rent, software subscriptions, and salaries. Variable costs include product cost, shipping, and packaging. The formula is: Break-Even Units = Fixed Costs / (Price - Variable Cost per Unit).
Discounts reduce your effective selling price, which lowers your contribution margin (price minus variable cost). This means you need to sell more units to cover the same fixed costs. For example, if your break-even is 200 units at full price, a 20% discount might push it to 250 units. Use the analyzer above to see the exact impact for your store.
Margin of safety measures how far your current sales are above the break-even point. It's calculated as: (Current Sales - Break-Even Sales) / Current Sales × 100%. A margin of safety above 40% is healthy, 20-40% is moderate, and below 20% means you're at risk of losing money if sales dip.
Fixed costs: rent, salaries, software subscriptions (Shopify plan, apps), insurance, marketing retainers, utilities. Variable costs per unit: product cost (COGS), shipping, packaging, payment processing fees, sales tax. Don't include one-time expenses like equipment purchases — those are capital expenses, not operating costs.
Run a break-even analysis when: (1) launching a new product, (2) changing prices, (3) planning a discount campaign, (4) hiring or expanding, (5) quarterly as part of financial review. Your break-even point changes whenever costs or prices change, so regular checks ensure you stay profitable.
The exact formula to calculate discount profitability, plus break-even volume analysis for every discount type.
Every discount type Shopify supports, with examples and when to use each one.
DealCraft helps you create smart discount rules with full visibility into your margins. Never sell below break-even again.
Install DealCraft FreeFree plan includes 3 discount rules · No credit card required
Free Tools
You know your break-even — now set the right price and understand your customer value.
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Take the quiz →Generate white-label discount audit reports for your Shopify clients. Enter store data, get a professional PDF with your agency branding.
Generate report →