The break-even point is the sales level at which total revenue exactly covers total cost. Below it every sale deepens the loss; above it the whole contribution margin drops through to profit. It is found by dividing fixed costs by unit contribution margin, and it makes it possible to talk about a unit target instead of a revenue target.
The most common mistake in e-commerce is treating advertising as a fixed cost; advertising scales with sales, so it is a variable item and belongs inside contribution margin. Rent, payroll, software subscriptions and accounting sit on the fixed side. Once the break-even unit count is worked out, the target becomes concrete for the team. Break-even should be calculated separately when a new product or a new channel opens, because commission, shipping and return structures differ by channel.
Break-even units = Monthly fixed costs ÷ Unit contribution margin
With 180,000 TL of monthly fixed costs and a unit contribution margin of 90 TL, the break-even point is 2,000 units.
The most common mistake in e-commerce is treating advertising as a fixed cost; advertising scales with sales, so it is a variable item and belongs inside contribution margin. Rent, payroll, software subscriptions and accounting sit on the fixed side. Once the break-even unit count is worked out, the target becomes conc…
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