How do I calculate break-even on an import shipment?

Break-even quantity is calculated by dividing your Total Fixed Costs (Tooling/Molds, Photography, Legal, fixed shipping/customs fees) by your Contribution Margin per unit (Selling Price - Variable Per Unit Cost). This tells you exactly how many units you must sell just to recover your initial investment.

Should I include tooling and molds in my break-even?

Yes. If you pay $3,000 for a custom injection mold in China, that is a sunk fixed cost. If your contribution margin per unit is $10, you must sell 300 units just to pay for the mold before you make a single dollar of actual profit from the inventory.

💰 Product Costing

Break Even Import Calculator

Use our break even import calculator to calculate break-even units and revenue for China import business. Factor in landed cost, fixed expenses, and variable costs per unit.

Updated: 2026-04-13

Planning Reference

Inputs Last Reviewed April 2026

Reference Basis

Built from current calculator assumptions plus typical import cost benchmarks used by China sourcing teams.

Planning Note

Use this to pressure-test margin and landed cost. Final profitability still depends on your freight quote, duty classification, and downstream selling costs.

Primary opportunity

break even import calculator
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Landed Cost Per Unit USD Your all-in cost per unit including duties, freight, and fees.

Selling Price Per Unit USD

Variable Costs (platform fees, shipping, etc.) % Amazon/eBay fees, per-order shipping, packaging — as % of selling price.

Monthly Fixed Costs USD Warehouse rent, salaries, software, advertising budget not included above.

Import Break-Even Analysis

Importing manufactured goods from China often requires high upfront fixed costs—such as tooling, compliance testing, mold fees, and marketing photography—long before the first unit is sold.

A break-even analysis shows the exact number of units you must sell to recoup your initial cash outlay.

Break-Even Formula

Break-Even Units = Total Fixed Upfront Costs / (Unit Sell Price - Landed Unit Variable Cost)

High-Risk Examples

If you are developing a custom electronics product:

PCB Design & NRE: $4,500
Injection Molds: $6,000
FCC/CE Testing: $3,500
Total Fixed Cost: $14,000

If your landed cost is $15 and you sell for $40, your contribution margin is $25.
You must sell 560 units just to break even on the engineering and compliance. If your first MOQ is only 500 units, you are mathematically guaranteed to lose money on your first run, requiring a successful second run to achieve profitability.

Tips for China Importers

Never compare suppliers by FOB price alone. A supplier $0.50 cheaper on FOB can easily be more expensive once freight, duty, and compliance differences are factored in. Always compare landed cost.
Include platform fees in your landed cost model. Amazon FBA referral + fulfillment fees total 30–40% of your selling price. If that's your channel, it must be in your cost calculation from day one.
Add a 15% cost contingency for your first import. First-time importers consistently underestimate costs — unexpected charges like detention fees, inspection costs, or currency moves routinely add 10–20%.
Calculate break-even units before ordering. Know exactly how many units you must sell to cover your landed cost and fixed overheads. If break-even is more than 60% of your order, the risk is too high.
Recalculate on every reorder. Freight rates, duty rates, and supplier prices all change. A cost model from 6 months ago can be meaningfully wrong. Always recalculate before committing to a new order.