MOQ Break-Even Calculator
Calculate the minimum units needed to cover fixed costs, reach a target profit, and test whether your proposed MOQ supports the result you want.
MOQ and Break-Even Results
Compare the proposed MOQ with the quantity required to cover fixed costs and reach target profit.
| Business Measure | Calculated Result | What It Means |
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Formula: break-even quantity = fixed costs ÷ contribution margin per unit. Target-profit quantity = (fixed costs + target profit) ÷ contribution margin per unit. Quantities are rounded up to whole units.
Use the Result as a Financial Threshold
A viable commercial MOQ may need more than cost coverage alone.
Omitted packaging, commission, inspection, loss, or handling costs will overstate contribution margin.
The calculator does not predict sales, payment timing, inventory risk, or the buyer’s acceptable order size.
The costs, price, profit target, and proposed MOQ are calculated on this page and are not saved.
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Frequently Asked Questions
Understand contribution margin, rounding, cost coverage, and the limits of a financially calculated MOQ.
How is the break-even quantity calculated?
The calculator subtracts variable cost per unit from selling price per unit to find contribution margin, then divides fixed costs by that contribution. The result is rounded up to the next whole unit so the calculated quantity does not remain below break-even.
What is contribution margin per unit?
Contribution margin per unit is the selling price minus variable cost per unit. Each unit sold contributes this amount toward fixed costs first and profit after fixed costs are covered.
Is the break-even quantity a recommended MOQ?
No. It is a financial threshold based only on the entered costs and selling price. A commercial MOQ may also need to reflect production constraints, freight efficiency, inventory risk, buyer demand, payment terms, and working capital.
Which costs should I include?
Enter one-time or order-level expenses as fixed costs. Combine all costs that rise with each unit into variable cost per unit, such as product, packaging, unit handling, commission per unit, or other unit-based charges.
Are my pricing and MOQ values saved?
No. The calculation runs in your browser. The costs, price, target profit, and proposed MOQ entered here are not saved by TradeGoAI.
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