Break-Even Price Calculator

Every seller eventually gets a scare from a repricer. You set a "minimum" without doing the math, a competitor drops their price, your tool chases it, and you start selling at a loss and feeling good about the sales rank. Break-even is the number that stops that.

This calculator tells you the exact price where profit is exactly zero — you cover the referral fee, the FBA fee, your cost, your ad spend, and everything else, and keep nothing.

How it works

The referral fee is the tricky part. It's a percentage of the sale price, so it moves as the price moves. The math solves for the price where (price − percentage fee − all fixed costs) = 0. Because the fee scales, the break-even point is a little higher than if you just added your costs up.

Set your real floor

The break-even number is your hard floor. Below it, you lose money on every unit. But you shouldn't price there — there's no cushion for a return, a storage fee, or a PPC bid increase.

The tool shows two cushions:

• +20% — the minimum I'd accept as a "never go below" line for a repricer.
• +35% — a healthier target that leaves room for promotions and still turns a profit.

Where people get burned

• Coupons. A 20% off coupon on a product priced at break-even means you pay customers to take it. Know your floor after the discount.
• PPC creep. If you set the floor using $2 PPC and your actual cost is $4, the floor is wrong. Use a realistic ad cost, not a hopeful one.
• Returns. This tool doesn't count return processing. On apparel or anything with a high return rate, add a return buffer to your floor or you'll discover the truth after the fact.

The one-line version: run this before you launch, write the +20% number into your repricer's minimum field, and forget about waking up to negative-profit sales.