TailorScan / Free Digital Commerce Lab
How many sales does your digital product need to break even?
Make the math visible before spending on a storefront. Estimate the order volume needed to cover fixed fees, per-sale charges, refunds and acquisition costs. Change every assumption. Results are calculated on your device; they are scenarios, not profit guarantees.
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02 / What the model says
How much volume is needed?
Positive modeled contribution does not ensure any customers will purchase.
Breakdown of the example
Gross order value: $390.00
Modeled refunds: $11.70
Checkout and processing charges: $14.31
Per-order acquisition and other costs: $0.00
Monthly fixed operating costs entered: $39.00
Expected revenue after refunds: $378.30
This is a contribution model, not accounting net profit. It omits your labor unless included in costs, income taxes, indirect taxes, exchange fees, disputed payments, fraud losses, chargeback fees and other unentered expenses. Refunds and fee reversals vary by provider. An actual result may be worse or better.
Choose the selling path after you know the economics.
The break-even number alone does not tell you which platform has better distribution, tax handling, customer relationships or operational risk. Compare those details before deciding to subscribe.
Compare platform fee scenarios โRead the vendor comparison โShopify affiliate disclosure: TailorScan LLC operates its own Shopify store and is a Shopify affiliate. We may receive a commission if a reader chooses to create a new store using the separate link below and later pays for an eligible full-priced plan. Our free break-even formulas and input assumptions are independent of affiliate compensation.
Questions worth answering before launch
Does 15 break-even orders mean I will sell 15 products?
No. It measures what your input costs would require, not customer demand. Prospect interest, promotion, refunds and trust still determine whether orders occur.
Why does a 3% refund assumption reduce expected revenue?
The model uses the expected full-price amount of refunded orders, then conservatively counts checkout charges on all attempted orders. Some providers return some fees after a refund. Use your actual terms for better estimates.
Does the remainder mean take-home profit?
No. It is the modeled amount left after the costs you enter, before income taxes and other omitted costs. Owner time and support can be significant even when delivery is automated.
Where are my calculations saved?
They are not stored, submitted or retained by this widget. Copy the scenario if you want a record. We don’t place analytic pixels or cookies inside the calculator itself; external site-level analytics may still measure page visits.
What if the contribution per order is zero or negative?
Then selling additional units cannot cover a positive monthly cost in this model. Reduce variable costs, improve prices or change the offer instead of assuming more volume solves the issue.
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