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:
- 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.
How to calculate your break-even point: A guide for ecommerce businesses
Our comprehensive guide covers everything you need to know about calculating your break-even point as an ecommerce business owner.
- What is a break-even point?
- Advantages of calculating a break-even point
- How to calculate your break-even point
- How to calculate a break-even point with multiple products
- Break-even point examples
- How to calculate a break-even point in Excel
- What are the limitations of a break-even analysis
- How to reduce your break-even point
- How often should you calculate your break-even point?