e-commerce

What Are the Key Variables for Calculating the Breakeven Formula

Published

3 years ago

September 24, 2022

The breakeven formula is one of the most basic formulas in accounting. It helps you determine whether your business is profitable or not, and it’s a great place to start when you’re trying to figure out how much you need to charge for your product or service. The breakeven formula identifies how many units you need to sell, taking into account fixed and variable costs. Make sure to understand how to calculate these metrics because you’ll add them to the pitch deck to impress investors during your fundraising efforts. The breakeven and estimated profits could also influence the safe note you draw up when contracting with financiers.

Calculating Fixed Costs

Fixed costs are those that don’t change with the level of sales. The most obvious example is rent. If you have to pay rent every month, it doesn’t matter how many products you make or how much you sell; the same amount of rent will come out of your pocket each month.

Examples of fixed costs are:

● Utilities – Gas, electric, internet, water, telephone, in addition to any other rates that do not change by sales volume.
● Insurance and loans – Insurance and loan repayments plus interest. Includes any equipment that is rented out that is paid periodically over time.
● Depreciation – If you buy equipment, such as office computers, this is a capital item that must be depreciated over a specified length of time.
● Payroll – For paid employees. Include pension, and benefits but exclude commission that is directly related to sales or production levels.
● Premises – Costs associated with the premises on a monthly or yearly basis, including the mortgage, interest, rent, and any other associated service costs.

It is important to create a spreadsheet that itemizes each of these expenses. When it comes to each of your company’s fixed costs, you should make an effort to estimate how much money those costs will amount to on both a monthly and a yearly basis for the company’s fiscal year. It’s part of learning how to calculate the breakeven point.

Variable Costs

Variable costs are the expenses that have to be paid to keep a business going. These costs change with the volume of business, so they’re considered “variable.” If you’re a coffee shop, for example, your variable costs are the coffee beans, coffee cups, and other ingredients you need to make your coffee drinks.

Examples of variable costs are:

● Production supplies – Such as oil, are consumed based on the amount of machinery usage. Therefore, these costs vary with volume.
● Wages – Includes commission-based salaries tied to the sales or manufacturing of items and the money paid to contractors.
● Materials – The cost of the raw materials used to manufacture or create your product, such as the costs of presentation materials if running a consultancy.
● Delivery – Delivery costs are the costs associated with getting a product from the manufacturer or supplier to the customer.
● Marketing –Money spent on client acquisition. Depending on how effective your marketing is, increased expenses should result in increased sales.

It’s not always easy to figure out variable costs, especially as your company grows and expands. As you grow, expand, and need more stock, you may receive a percentage off for buying in bulk.

Factor in these key variables when working out the breakeven point and you’ll exactly where your company is at, and the areas where you need to work harder to ensure consistent profits and lasting success.

BIO

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Alejandro Cremades is a serial entrepreneur and the author of The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star, Barbara Corcoran and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs.

Most recently, Alejandro built and exited CoFoundersLab, which is one of the largest communities of founders online.

Prior to CoFoundersLab, Alejandro worked as a lawyer at King & Spalding, where he was involved in one of the biggest investment arbitration cases in history ($113 billion at stake).

Alejandro is an active speaker and has given guest lectures at the Wharton School of Business, Columbia Business School, and NYU Stern School of Business.

Alejandro has been involved with the JOBS Act since its inception and was invited to the White House and the US House of Representatives to provide his stands on the new regulatory changes concerning fundraising online.

Related Topics:Alejandro Cremades John Wiley

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e-commerce

Comet makes e-commerce debut on Myntra with 40 sneaker styles

Published

1 week ago

February 6, 2026

indiantelevision.com Team

BENGALURU: Culture-first sneaker label Comet has entered Indian e-commerce with its debut on Myntra, bringing over 40 footwear styles to the fashion platform’s 75 million monthly active users. The move marks Comet’s first online retail partnership as it looks to scale beyond its direct-to-consumer roots.

The launch features the brand’s popular ranges including X Lows, Aeon V2 and Alter, alongside an exclusive new design, X Lows Polaris, available only on Myntra. The collaboration strengthens Myntra’s growing sneaker portfolio aimed at Gen Z and millennial consumers drawn to streetwear culture and design-led brands.

Myntra head of category and revenue Ritesh Mishra, said Comet’s sharp design language and community-driven approach aligned with the platform’s focus on trend-forward labels shaping India’s contemporary sneaker culture.

Comet co-founders Utkarsh Gupta and Dishant Daryani said the partnership would help the brand reach a wider audience while staying rooted in its product-first philosophy and close customer engagement.

Built on the ethos “Never shy, never sorry”, Comet has gained traction for bold silhouettes, vibrant colourways and limited-edition drops inspired by cultural nostalgia and storytelling. The Myntra debut signals the brand’s next phase of growth in India’s fast-evolving sneaker and streetwear market.

e-commerce

Amazon Q4 sales jump 14 per cent as AWS revenue surges 24 per cent

Published

1 week ago

February 6, 2026

indiantelevision.com Team

SEATTLE: Amazon has closed 2025 with robust fourth-quarter growth across its core businesses, even as spending on sales, marketing and infrastructure continued to climb. The company reported a 14 per cent rise in Q4 net sales to $213.4 billion, driven by solid momentum in North America, International markets and a sharp acceleration at AWS.

Sales and marketing expenses rose 8.7 per cent year on year to $14.3 billion in the quarter, reflecting sustained investment in customer acquisition and brand reach. For the full year, the bill climbed 7.3 per cent to $47.1 billion.

AWS remained the standout performer, with revenue jumping 24 per cent to $35.6 billion in the quarter, its fastest pace in more than three years. North America sales grew 10 per cent to $127.1 billion, while International revenues climbed 17 per cent to $50.7 billion, aided partly by favourable currency movements.

Operating income rose to $25.0 billion in Q4, up from $21.2 billion a year earlier, though the figure was weighed down by special charges linked to tax settlements in Italy, severance costs and asset impairments tied largely to physical stores. Excluding these, operating profit would have reached $27.4 billion.

Net income increased to $21.2 billion, or $1.95 per share, compared with $20.0 billion a year ago.

For the full year 2025, Amazon posted 12 per cent growth in net sales to $716.9 billion. AWS revenues climbed 20 per cent to $128.7 billion, while North America and International segments grew 10 per cent and 13 per cent respectively. Operating income expanded to $80.0 billion, with AWS contributing more than half of the total.

Cash generation strengthened, with operating cash flow rising 20 per cent to $139.5 billion. Free cash flow, however, fell sharply to $11.2 billion as capital spending surged, largely reflecting heavy investment in artificial intelligence infrastructure.

President and chief executive officer Andy Jassy, said demand across cloud services, advertising, retail and emerging technologies such as AI chips, robotics and low-earth-orbit satellites remained strong. He added that Amazon plans to invest around $200 billion in capital expenditure in 2026 to support long-term growth.

The company also pointed to a wave of new AWS partnerships, spanning clients such as OpenAI, Visa, the NBA, BlackRock, Salesforce, Adobe, HSBC and the London Stock Exchange Group, underscoring cloud demand across industries.

e-commerce

Flipkart elevates Aditya Maheshwari as head of category and P and L for toys, stationery and babycare

Published

1 week ago

February 6, 2026

indiantelevision.com Team

BENGALURU: Flipkart has elevated Aditya Maheshwari to head of category and P and L for toys, stationery and babycare, placing him in charge of end-to-end business strategy and financial performance across the high-growth segments.

The move follows a four-year stint at the e-commerce major, where Maheshwari served as category head for toys and stationery and associate director for beauty and personal care. During this period, he played a key role in strengthening Flipkart’s position across multiple consumer categories through scale-driven portfolio management.

Maheshwari brings deep experience across India’s startup and e-commerce ecosystem. Prior to his current elevation, he previously worked at Flipkart as a category manager and business development lead in the early phase of his career.

He is also the co-founder of Packflea.com and has held leadership roles including head of alliances at Xoxoday and head buyer at Gozefo.com. His early experience in procurement and sourcing spans platforms such as Giftxoxo.com and buytheprice.com.

With a strong track record of managing large P&Ls and building scalable category businesses, Maheshwari is now set to spearhead Flipkart’s strategic expansion in toys and babycare.