Break-Even Orders & Overhead Calculator
Determine exactly how many delivered orders per month are needed to cover fixed overhead (team, call center, software, office, apps).
Every e-commerce business incurs fixed monthly overheads regardless of sales volume—such as salaries, warehouse rent, Shopify apps, and call center retainer fees. This calculator determines the precise number of delivered orders required to cover these fixed costs before generating real net profit.
How It Works & Mathematical Formulas
Every e-commerce business incurs fixed monthly overheads regardless of sales volume—such as salaries, warehouse rent, Shopify apps, and call center retainer fees. This calculator determines the precise number of delivered orders required to cover these fixed costs before generating real net profit.
Break-Even Order Volume
Calculates the threshold of delivered packages where total gross profit equals total overhead.
Net Contribution Margin
The net cash remaining from each delivered unit to service company fixed costs.
How to Use This Calculator Step-by-Step
Product Costs & Pricing
Enter your unit cost of goods (COGS), planned retail price, and packaging expenses.
Ad Spend & Confirmation
Input expected customer acquisition cost (CPA/CPL) and call-center order confirmation rate.
Courier Delivery & Returns
Configure your actual delivery success rate and courier forward and return (RTO) fees.
Review Net Margins
Analyze your real cash profit per delivered order and break-even thresholds before spending.
Case Study: Monthly Fixed Overhead of 30,000 MAD
A COD brand pays 30,000 MAD in monthly salaries, office rent, and software. Each delivered order generates 120 MAD net contribution after product cost, delivery, returns, and media buying:
Common Pitfalls & Costly Mistakes
Confusing Gross Profit with Contribution Margin
Calculating break-even using selling price minus COGS ignores shipping and returns, underestimating required sales volume by 40-60%.
Forgetting App Subscriptions and Bank Fees
Small recurring software fees add up quickly; always account for every operational overhead line item.
Frequently Asked Questions
What happens if our delivery rate drops? ▼
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