Minimum Order Break-Even Calculator
Units that must sell to repay an MOQ.
Calculate how many units of a minimum order have to sell to repay the cash committed, and the profit at a realistic sell-through.
Units to break even
250
50.0% of the order
Under half the order gives real headroom. An MOQ is cash committed before demand is proven, so the break-even share matters more than the unit discount that came with it.
How the Minimum Order Break-Even Calculator works
A minimum order quantity is a cash commitment made before any demand is proven, so the number that matters is not the unit cost but how many units have to sell before the order is repaid. If that figure is more than about half the order, the MOQ is carrying a lot of risk for whatever discount it bought.
Also known as: MOQ break-even calculator · minimum order risk calculator
Cash committed before demand is proven
An MOQ is a fixed quantity a supplier will not go below, and accepting one means committing cash before a single unit has sold. The unit cost usually falls, which is the attraction; the risk rises, which is the cost.
The number that matters is how many units must sell to repay the commitment: total cash divided by the margin per unit after expected markdown. Expressed as a share of the order, it is an immediate read on how much risk the MOQ carries.
Under half the order is comfortable. Above about 70% the order only works if sell-through is excellent, and any slow start turns it into a loss.
A worked example
A 500 unit MOQ at 12 each is 6,000 committed. At a 45 retail with a 20% average markdown, each unit returns 36 and the margin is 24. Break-even is 250 units — exactly half the order.
At an 80% sell-through, 400 units sell for 9,600 of margin against the 6,000 committed, so 3,600 of profit. At a 50% sell-through it is 250 units and break-even exactly, with a warehouse still holding half the order.
Where the answer misleads
The sell-through assumption is doing most of the work and it is the number people are most optimistic about. Use your own history rather than a hope; 70 to 80% is a good season for fashion apparel, and assuming 100% is how MOQ decisions go wrong.
Negotiating a smaller MOQ is often worth more than a lower unit price, because it converts a commitment into an option. A smaller first order at a higher cost proves demand and preserves the ability to reorder.
Finally, this ignores the cost of capital and of storage. Money tied up in stock for six months has an opportunity cost, and stock takes space — neither appears in a break-even count of units.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I work out MOQ break-even?
Divide the total cash committed by the margin per unit after any expected markdown. A 500 unit order at 12 each is 6,000 committed; at a 24 margin per unit, 250 units repay it — half the order.
What break-even percentage is safe?
Under half the order gives real headroom. Above about 70% the order only works if sell-through is excellent, and any markdown or slow start turns it into a loss.
Should I negotiate a lower MOQ?
Often worth more than a lower unit price. A smaller order at a slightly higher cost per unit proves demand before the cash is committed, and the option to reorder is usually worth the premium.
What sell-through should I assume?
Whatever your history says, not what you hope. Seventy to eighty percent at full price is a good season for fashion apparel; assuming 100% is how MOQ decisions go wrong.