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Glossary · Profit

Break-even point

The number of orders a month has to sell before it stops losing money: ads and fixed costs, divided by what each order contributes.

Ads€1,180
Fixed costs€405
Contribution per order€60.38
Orders needed27
An example to show the arithmetic.

01 / How it is worked out

The formula

Formula

(Ads + fixed costs) ÷ contribution per order

Example

In July 2026 each demo order contributed €60.38; €1,180 of ads and €405 of fixed costs needed 27 orders to cover. It sold 68.

02 / Why it matters

What it changes in a decision

  • Below the break-even point every order still left money, but not enough to pay for the ads and the overheads together.

  • It moves with every lever: a price rise, a cheaper supplier, lower shipping or less ad spend each lower it by a different amount — worth knowing which one moves it most.

See every one of these on your own store.

Profflow works them out from your orders, ads and costs, order by order — read-only, in about ten minutes.