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TikTok Shop Break-Even Calculator

See the lowest TikTok Shop price that covers the referral fee, creator commission, seller-funded discount, shipping, ads and refunds, how many orders a month cover your fixed costs, and how much commission or ad spend each order can carry.

By Content reviewed

Pick your category preset or enter the referral rate Seller Center shows. Affiliate commission, refunds and ad cost are separate inputs.
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$

Samples, software, live-stream hosts, storage.

Product and costs

Referral fee category (US)

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What one unit costs you (COGS).

$

Label or shipping fee per order.

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How the sale happens
%

0 for sales without a creator.

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0 if you don't advertise.

Advanced settingsDiscounts, refunds
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Break-even on TikTok Shop

Break-even list price$23.36
Break-even units per month30 orders
Net profit per order$5.04
Net margin16.8%

How much room you have at this price

Max affiliate commission31.8%
Max ad cost per order$9.04
Break-even ROAS3.32×

Order breakdown at your list price

Customer pays (after your discount)$29.99
Referral fee-$1.80
Affiliate commission-$4.50
Ad cost-$4.00
Refund allowance-$0.90
Product, packaging and shipping-$13.75

How this is calculated

Break-even list price = lowest price where Net profit per order ≥ 0
Break-even units = Monthly fixed costs ÷ Net profit per order
Max affiliate % = (Net profit + Affiliate commission) ÷ Sale price
Break-even ROAS = Sale price ÷ Profit before ads

Assumptions

  • TikTok Shop US. Referral rate from the selected category, or the rate you confirm in Seller Center
  • Referral fee and affiliate commission are calculated on the post-discount item price; buyer tax is excluded
  • Free shipping to the buyer: the shipping you pay is a cost, not revenue
  • Affiliate rate, ad cost and refund allowance are your inputs, not TikTok data

Source: seller-us.tiktok.com/university/essay · Last verified: 2026-10-11

Worked example: break-even price with ad cost

Product $9, postage $5, 10% creator commission, and three levels of paid ad cost per order.

Organic$3 ads/order$6 ads/order
Break-even price$16.67$20.24$23.81

Every dollar of ad cost per order adds more than a dollar to break-even, because the referral fee and commission are charged on the higher price too.

Cost inputs are illustrative; fees are calculated with the same rates as the calculator above.

TikTok Shop break-even formula

Break-even price: (Product cost + Shipping + Packaging) ÷ (1 − Referral% − Affiliate%)
Contribution margin: Sale price − Variable costs − Referral fee − Affiliate commission
Break-even units (monthly): Fixed costs ÷ Contribution margin per unit

Assumptions

  • US reference rates: 6% for most listed categories and 5% for eligible jewelry or pre-owned categories; no separate payment-processing rate is modeled
  • Affiliate commission (typically 5–20%), refund allowance and ad cost per order are separate inputs
  • TikTok Shop has no listing fee and no monthly subscription fee, so fixed costs are usually $0 unless you run paid ads

Source: seller-us.tiktok.com/university/essay · Last verified: 2026-10-11

Review the market, fee bases and exclusions shown with this tool. Published rates and illustrative cost inputs have different certainty. Compare your breakdown with an actual order statement. Sources and methodology.

Frequently Asked Questions

How do I calculate break-even price on TikTok Shop?
Break-even price = (Product cost + Shipping cost) / (1 − referral% − affiliate%). With this calculator's 6% default referral assumption and $15 costs, break-even is $15 / 0.94 = $15.96 before affiliate commission. Use your confirmed Seller Center rate; the category assumptions range 5%–6%.
Does TikTok Shop's break-even price differ from Etsy's?
With a confirmed 5%–6% referral rate and no affiliate commission, TikTok Shop can have a lower modeled fee stack than Etsy's typical US transaction, payment, and listing fees. The result depends on category, fee basis, shipping, and promotion terms, so compare both calculators with your actual inputs.
Should I include affiliate commission in my break-even calculation?
Yes, if you plan to use affiliates. Affiliate commission is a real cost per sale. With a 6% referral assumption and 10% affiliate commission, the combined modeled percentage is 16%; $12 in costs then needs $12 / (1 − 0.16) = $14.29. Replace the 6% assumption with your confirmed rate.
What is the maximum affiliate commission I can offer?
At a given price, the highest commission is (Net profit + Current commission) ÷ Sale price. Any higher rate makes each creator sale lose money. The calculator shows it with your ad cost included, so lower it if you also run ads on the same orders.
What is break-even ROAS on TikTok Shop?
Break-even ROAS = Sale price ÷ Profit per order before ads. If a $29.99 sale leaves $9 before ads, ads must return at least $3.33 of revenue per $1 spent. The Break-Even ROAS calculator goes deeper on campaign-level numbers.
What's the difference between break-even price and break-even units?
Break-even price covers the per-order costs. Break-even units is how many orders a month you need at your chosen price to also cover fixed costs such as samples, software or live-stream hosts.
What's a common mistake when calculating TikTok Shop break-even price?
Using a generic rate or fee basis instead of the one shown in Seller Center. This calculator applies its referral-rate assumption to the modeled sale amount; confirm whether shipping, discounts, or tax affect your account's fee basis before setting a price.
How much cushion should I build above my break-even price?
Break-even price means zero profit — it's a floor, not a target. Most sellers price at least 20–40% above break-even to leave room for returns, discounts, and affiliate commission. If your break-even is $15.96, pricing at $22–25 gives you a working margin even after a flash-sale discount or a refunded order.
Which referral rate should I use?
Use the rate Seller Center shows for your category. The presets reflect TikTok's published US reference rates; choose Confirmed account rate if your category or promotion differs.