FBA Break-Even Calculator

Calculate your break-even point for Amazon FBA products. Determine the minimum selling price needed to cover all costs and start making a profit.

How Break-Even Price Is Calculated

The break-even point is the minimum price you need to sell your product at to cover all costs. The formula accounts for all FBA fees:

Break-Even Price = (Product Cost + Fulfillment Fee + Other Costs + $0.30) / (1 - Referral Rate)

Where:

• Product Cost: What you pay to acquire/manufacture the item
• Fulfillment Fee: Amazon's pick, pack, and ship fee
• $0.30: Minimum referral fee per item
• Referral Rate: Percentage of sale price (typically 12-15%)

Real Example: Break-Even for a $10 Product

Let's calculate the break-even price for a product with these costs:

• Product Cost: $10.00
• Fulfillment Fee: $4.76 (Large Standard)
• Other Costs: $1.00 (packaging, etc.)
• Referral Rate: 15%

Step 1: Sum fixed costs = $10.00 + $4.76 + $1.00 + $0.30 = $16.06
Step 2: Calculate denominator = 1 - 0.15 = 0.85
Step 3: Break-Even Price = $16.06 / 0.85 = $18.89

This means you need to sell your product for at least $18.89 to break even. Selling above this price generates profit.

Key Factors That Impact Break-Even

Several variables significantly affect your break-even price:

• Product Cost: Lower costs mean lower break-even price - negotiate with suppliers!
• Size Tier: Small Standard items have lower fulfillment fees ($3.22 vs $4.76+)
• Referral Rate: Media categories (books, music) have lower 12% rates
• Other Costs: Packaging, prep services, and advertising all increase BEP

What This Calculator Doesn't Include

This tool calculates core break-even, but you should also consider:

• Monthly Storage Fees: Based on volume in Amazon warehouses
• Long-Term Storage Fees: For items stored >365 days
• Return Costs: Typically $2.50-$5.00 per return
• Advertising Costs: PPC campaigns to drive sales
• Taxes: Income tax on profits

FAQ About Break-Even Analysis