How to Find Your Break-Even Price on TikTok Shop

Your break-even price on TikTok Shop is the lowest price you can charge per order and not lose money after product cost, shipping, platform fees, affiliate commission, discounts and ads. I walk through every cost and show how to find that number, then you can use the free price calculator to do the math.

What is break even price on TikTok Shop?

Break-even price is the price per order where your total revenue equals your total costs, so your profit is zero. If you charge less than this, you lose money on every order. If you charge more, you keep the difference as profit. The number changes when any of your costs change, so it is worth recalculating when a fee, shipping rate or supplier price changes.

What costs should I include in my break-even price?

Your break-even price must cover every cost that happens because of one order. Split these into fixed costs (the same every order) and percentage costs (they go up when the price goes up).

Cost	What it is	Where to find it
Product cost	What you pay the supplier for each unit, including any packaging inside the product box.	Your supplier invoice or purchase order.
Shipping and packing	What you pay to get the parcel to the buyer, including box, filler and label.	Your carrier rate card or your 3PL invoice.
Platform fee	The cut TikTok Shop takes per order. It changes, so check current rate.	TikTok Shop Seller University or your settlement statement.
Affiliate commission	The share you pay a creator when their video or live stream makes the sale.	Your affiliate settings in Seller Center.
Discounts	Any voucher, flash deal or campaign price you fund yourself.	Your promotion settings and planned campaigns.
Ad spend per order	If you run ads, divide total ad cost by the number of orders those ads brought.	Your ads dashboard or GMV Max reports.

Your break-even price covers all rows in this table. The fixed costs are easy because they do not change with the price. The percentage costs depend on the price, so you have to work backwards to find the price that leaves zero.

How do I calculate my break-even price on TikTok Shop?

Start by writing down your per-order costs, then work backwards to find the price where nothing is left over. Follow these numbered steps.

1. List your fixed costs per order: product cost, shipping and packing, and ad spend per order if you advertise. These stay the same no matter what price you charge.
2. List your percentage costs: the platform fee, the affiliate commission (if a creator makes the sale), and any discount you plan to run. Each of these is a percentage of the price the buyer pays after your discount.
3. The break-even price is the price where, after subtracting all fixed costs and all percentage costs, the result is zero. You can solve this by trial and error, or use the free price calculator.
4. Open the free price calculator. Enter your product cost, shipping, the current platform fee from Seller Center, the affiliate commission you expect to pay, and the discount you plan to run. Set the target margin to zero, and the calculator shows the lowest price that does not lose money.
5. Compare that price to what buyers are paying for similar products. If your break-even price is higher than the market price, you need to cut a cost, raise the perceived value, or skip that product.

The exact rates change, so always pull the current platform fee and any campaign discounts from your own Seller Center. The calculator does not assume a rate for you.

What if my break-even price is too high?

A break-even price above what shoppers will pay is a warning that the product economics do not work yet. Before you lower the price below break-even, check these possible fixes:

• Cut product cost: Ask your supplier for better terms on larger orders, or find a lower-cost supplier that still meets quality.
• Cut shipping: Use a smaller, lighter box, or switch to a more cost-effective carrier if your order volume allows.
• Lower affiliate commission: Pay creators less, but only if they can still make enough to promote your product.
• Reduce planned discounts: If you run flash deals or vouchers often, reduce the discount size or how often you run them.
• Raise perceived value: Improve photos, add a bundle, or fix the product title so buyers understand why it is worth more.

If none of these work, the product may not be viable on TikTok Shop at the current fees. Move on to a product with better unit economics.

How should I price products above break-even on TikTok Shop?

Set your list price above break-even by adding the profit margin you want on each order. My honest take is that break-even is the floor, not the goal. You need margin to cover returns, late shipments, price drops and slow months. I recommend using the profit per order guide to see what you actually keep after every cost, and then setting your price with that number in mind. A good target margin depends on your category and cash flow, so read what is a good profit margin for a framework.

How often should I recalculate my break-even price on TikTok Shop?

Recalculate whenever a cost changes: a supplier price increase, a shipping rate change, a platform fee update, or a new affiliate commission plan. Also recalculate before you join a campaign or run a discount, because the discount lowers the price the buyer pays while the percentage costs stay the same. I check my break-even price at least once a month when I review my weekly report, and more often when I test a new product. If you run promotions often, use the free price calculator with a discount already included so the price still meets your margin on discounted orders.

If your situation is different, ask me in the chat on this site. Tell me what you sell, your current price and costs, and what you tried. I will help you work through it for free.