Break-Even (Break-Even Point)
The point at which revenue exactly covers costs, so profit is zero. Sellers use it to find the lowest viable price and the highest ACoS they can afford.
What Does Break-Even Mean?
You break even when what a sale brings in equals what it costs you. Below that point every unit loses money; above it every unit earns.
Break-Even Price
The break-even price is the lowest price at which a unit still covers its product cost and Amazon fees. Because the referral fee is a percentage of the price, you cannot simply add up your costs - the fee moves with the price you are solving for.
Break-Even ACoS
Your break-even ACoS is the share of ad-attributed revenue you can spend on ads before the sale stops being profitable. It equals your profit margin before advertising, after product cost, Amazon fees and any other per-unit costs.
If a $25.00 product leaves $7.50 after product cost and Amazon fees, the pre-ad margin is 30%. An ACoS below 30% is profitable, 30% breaks even, and anything above it loses money on each advertised sale.
How SellerLegend Helps
SellerLegend's free break-even calculator works out the break-even price and ACoS from your own numbers, and the platform tracks profit per product with COGS, fees and ad spend included.
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