Chapter 9

How often should you calculate your break-even point?

Take a look at how often you should be calculating your break-even point as an ecommerce business.

Ecommerce

The answer depends on the nature of your business. While some ecommerce businesses prefer to calculate their monthly break-even point, others opt to perform a break-even analysis yearly. Some of the factors that may influence whether you calculate your break-even point include:

  • Industry
  • Individual preference
  • Business environment

If you’re interested in how to calculate your monthly break-even point, you will need to use your monthly fixed costs and sales figures, instead of annual projections.

Helpful resources on running an ecommerce business

You can use Xero alongside a range of ecommerce integrated apps to sync your ecommerce sales data and have it all in one place, giving you total visibility of your numbers and all the information you need to calculate your break-even point. For more resources on running your ecommerce businesses, take a look at Xero’s toolkit for building and running a successful business online.

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