Never list below your break-even price. This calculator accounts for item cost, shipping, packaging, fees and desired profit.
Formula: Break-even = Total Costs / (1 - FVF Rate). For $30 total costs at 13.25% FVF: minimum price = $34.58.
Reach for this calculator when you need to present a business metric to stakeholders. Accurate, consistently-defined figures command more credibility than estimates, particularly in financial discussions.
Many business metric errors arise from using the wrong time period for the calculation. Annualising a figure from a seasonal month, or averaging a figure that changes over time, can produce misleading results that don't reflect steady-state performance.
A startup founder uses the calculator to determine break-even point: fixed monthly costs £12,000, variable cost per unit £18, selling price £42. Break-even is 500 units per month — a concrete sales target that the team can evaluate against pipeline and capacity.
Add up all costs (item, shipping, packaging) and divide by (1 - fee rate). This gives the minimum sale price to cover all expenses.
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