Break-Even Pricing: The Minimum Price Every Seller Needs
How to calculate break-even price with platform fees, VAT, returns, and shipping — the foundation of profit-first repricing.
Break-even price is the lowest you can sell for without expecting a loss per unit. It is not your target price — it is your floor.
The break-even formula
At minimum:
break-even = (unit cost + shipping + fixed fees) / (1 - platform fee % - return loss %)
With VAT-inclusive pricing, net revenue is lower than the sticker price. Returns destroy variable cost on refunded units.
Common mistakes
- Ignoring fixed per-unit fees (FBA fulfilment, payment processing flat fees).
- Using competitor price as break-even (their cost structure differs).
- Forgetting ad spend per unit on paid traffic.
Use the same math everywhere
Kepll uses one shared pricing engine for:
- Dashboard margin displays
- AI price recommendations (hard break-even constraint)
- Free public calculators
Try the break-even calculator — shareable via URL with your numbers pre-filled.
From calculator to automation
Once you know your floor, Kepll monitors market signals and recommends profit-maximizing prices above break-even across Amazon, Shopify, Etsy, and eBay.
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