MOQ Break-even Calculator
A supplier's MOQ is only a good deal if the numbers work. Enter your cost, price, and fixed order costs to see your profit at MOQ — and how many units you must sell just to break even.
Your MOQ math
How it works — the methodology
Every order has two kinds of cost: per-unit cost (what each piece costs you) and fixed order costs (freight, inspection, brokerage — the same whether you order 100 or 10,000 units). The break-even point is where your total margin exactly covers the fixed costs:
profit at MOQ = (margin per unit × MOQ) − fixed costs
break-even quantity = fixed costs ÷ margin per unit (rounded up)
margin % = margin per unit ÷ selling price × 100
How to read the results:
- Profit at MOQ is negative? The MOQ is too small for your fixed costs — or your margin is too thin. Order more, cut fixed costs, or renegotiate.
- Break-even quantity is close to the MOQ? Risky. One slow month and the order loses money. Look for a comfortable gap.
- Is the break-even point far under the MOQ? Healthy — the order has room to absorb surprises.
Tip: use your landed cost per unit (not the bare quotation price) as the unit cost. Run the landed cost calculator first if you haven't.
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Hire JaykmFrequently asked questions
What is MOQ?
MOQ stands for minimum order quantity — the smallest order a supplier will accept. It exists because setup, material purchasing, and production line time cost the supplier money regardless of order size.
How do I know if a supplier's MOQ is worth accepting?
Multiply your per-unit margin (selling price minus unit cost) by the MOQ, then subtract fixed order costs like freight and inspection. If the result is comfortably positive and you can sell that quantity, the MOQ works.
What are fixed costs per order?
Costs that do not change with quantity: international freight, inspection fees, customs brokerage, and samples. They hit small orders hardest because fewer units share the cost.
Can I negotiate a lower MOQ with a Chinese supplier?
Often yes, especially if you accept a slightly higher unit price, use stock materials or colors, or commit to repeat orders. But run the math first — a lower MOQ at a higher unit price can be worse than the standard MOQ.
What is a healthy margin for imported products?
It varies by category, but many small importers target at least 30–50% gross margin on landed cost to cover marketing, returns, fees, and leave a profit. This calculator shows margin on selling price before freight — treat it as a starting point.
Why does the calculator show a warning instead of results?
If your selling price is not higher than your unit cost, there is no margin to work with — no quantity can make the order profitable. Raise the price or negotiate the cost down first.