Is $500 enough to start an online store?

It can be enough for a very small test if you already have products, equipment, photos, and a way to fulfill orders. It is usually not enough for inventory, creative work, advertising, and a cash buffer together. Write the launch list first.

Does the platform subscription count as a startup cost?

The first payment belongs in opening cash; the subscription is recurring. If paid annually, track cash timing and monthly cost separately.

Should I include my salary in ecommerce break-even?

Yes. Owner pay is part of the monthly amount the store must produce. Label it separately so you can compare results with and without an owner draw.

Is inventory a fixed or variable cost?

Inventory used to fulfill each order is generally variable because it rises with sales. Inventory purchased before launch is a startup cash requirement. If you keep a minimum stock level, plan that cash need separately from the per-order cost.

How much cash should I keep after opening?

Base the reserve on payment timing, reorders, returns, and monthly fixed costs. Paying suppliers upfront requires a different buffer from collecting payment first.

Can I use the calculator if I do not sell in US dollars?

Yes. The calculator supports other currencies. Keep inputs in one currency and update them when local supplier, payment, shipping, or tax costs change.

What if my sales change by season?

Run high- and low-season cases instead of using your best month. Compare the fixed requirement with slower months and decide what stronger months must set aside. ## Takeaways - Startup cash and monthly break-even are different calculations. Keep launch purchases and recurring operating costs separate. - Break-even should cover monthly fixed costs, owner pay, and target profit, after variable selling costs are deducted. - Inventory, margin, average order value, and order volume can change the answer more than the platform. - Round orders up and plan for cash timing, not just a tidy profit-and-loss result.

How Much Does It Cost to Start an Online Store?

Published by MyBreakeven. Report a calculation or content issue to support@mybreakeven.com.

Published September 18, 2026 · Updated September 18, 2026

Estimate the cost to start an ecommerce store by separating launch cash, monthly fixed costs, owner pay, inventory, margins, and profit targets.

E-commerce · Startup Costs · Break-Even Planning

E-commerce owner reviewing startup costs and opening budget

Calculator features

One-time opening cash separated from monthly fixed costs
Three illustrative startup budget scenarios
Break-even bridge from monthly costs to required sales

The cost to start an ecommerce store can be as low as a few hundred dollars for a lean test or several thousand dollars for a stocked, branded launch. Your total depends on inventory, help, design, and the cash needed for the first months. Separate one-time startup spending from recurring monthly fixed costs. Startup cash funds launch; break-even covers operations.

Quick answer: A lean online store might need $800–$2,500 in one-time setup and opening inventory, while a store with deeper stock, custom work, and launch marketing might need $10,000 or more. Those are illustrative planning figures, not market statistics. Add monthly fixed costs separately, then include owner pay and target profit when calculating the sales level you need.

The direct answer: separate launch cash from monthly break-even

Start with two different questions:

How much cash must I have before opening?
How much must the store sell each month to pay its bills, pay me, and reach my target profit?

The first funds launch purchases such as inventory, packaging, photography, registration, and advertising. The second covers monthly fixed costs, owner pay, and target profit.

Do not put opening inventory into monthly fixed costs. Inventory used for each sale is usually variable; show opening stock in the startup budget and deduct sale-linked costs in break-even math.

Here is an illustrative USD budget for a small store selling a focused product range:

| One-time or launch-period item | Illustrative cost | |---|---:| | Business registration and basic setup | $150 | | Domain, store setup, and first software payments | $240 | | Product samples and photography | $360 | | Opening inventory | $2,400 | | Packaging and shipping supplies | $300 | | Initial launch advertising | $600 | | Cash buffer for small surprises | $450 | | Total opening cash | $4,500 |

The arithmetic is $150 + $240 + $360 + $2,400 + $300 + $600 + $450 = $4,500. This is illustrative, not a market statistic.

Now build the monthly view. Suppose fixed operating costs are $1,250 per month, owner pay is $2,000 per month, and your target profit is $750 per month. The store therefore needs to cover $1,250 + $2,000 + $750 = $4,000 before variable costs.

Assume an average order value of $80. If product cost, packing per order, payment processing, and other sale-linked costs total 40% of revenue, the contribution margin is 60%. Each sales dollar leaves $0.60 for fixed costs, owner pay, and target profit. Required monthly revenue is:

$4,000 ÷ 0.60 = $6,666.67, or about $6,667.

At an $80 average order, $6,666.67 ÷ $80 = 83.33, so plan for 84 orders. They produce $6,720; at 60%, the contribution is $4,032, covering the requirement with $32 left over.

The store needs $4,500 to open, plus enough working cash to cover the gap between paying suppliers and receiving customer revenue. Keep those figures separate.

What changes the answer

Inventory model. A print-on-demand, dropship, or made-to-order store may need less opening cash because it holds less stock, though per-unit costs or fulfillment times may be higher. Buying 300 units before launch requires more cash than ordering after each sale.

Product count and order size. Ten products require less creative work and purchasing than 100. A higher average order value reduces required orders only if customers actually buy bundles or multiple units.

Brand and site work. A basic theme costs less cash than custom design, development, copywriting, and photography, but may require more of your time. Track paid work separately from unpaid hours.

Acquisition costs. Separate a launch ad test from ongoing advertising. Include email software, apps, subscriptions, and continuing freelance or agency retainers in monthly fixed costs.

Returns, taxes, and shipping policy. Free shipping can become a cost per order, while returns can add shipping, replacement stock, and payment reversals. Keep collected sales tax or value-added tax separate from revenue and check local rules.

Three realistic worked scenarios

The following are illustrative USD planning cases, not market statistics or promises.

1. A small made-to-order shop

A maker sells personalized items and buys supplies after receiving orders. The opening budget is:

Samples and product photos: $250
Domain and basic store setup: $180
Packaging starter supply: $120
Launch promotion: $300
Cash buffer: $250

Opening cash is $250 + $180 + $120 + $300 + $250 = $1,100.

Monthly fixed costs are $420 for software, insurance, and small operating subscriptions. The owner wants $1,500 in monthly pay and $300 in target profit. The monthly requirement is $420 + $1,500 + $300 = $2,220.

Supplies, payment fees, and other variable costs consume 35% of sales, leaving a 65% contribution margin. Required revenue is $2,220 ÷ 0.65 = $3,415.38, or about $3,416. With a $65 average order, the shop needs $3,415.38 ÷ $65 = 52.54, so it should plan for 53 orders. At 53 orders, revenue is $3,445 and contribution is $2,239.25, or $19.25 above the requirement.

2. A stocked niche store run by one owner

This owner wants stock ready to ship. The opening budget is:

Registration and professional setup: $300
Store design, domain, and setup: $650
Samples and photography: $500
Opening inventory: $6,000
Packaging and labels: $700
Launch advertising: $1,200
Cash buffer: $1,150

The opening requirement is $300 + $650 + $500 + $6,000 + $700 + $1,200 + $1,150 = $10,500.

Monthly fixed costs are $1,850. Owner pay is $2,500, and target profit is $1,000. The monthly requirement is $1,850 + $2,500 + $1,000 = $5,350. If variable costs are 55% of revenue, the contribution margin is 45%.

Required revenue is $5,350 ÷ 0.45 = $11,888.89, or about $11,889. With a $95 average order, the order count is $11,888.89 ÷ $95 = 125.15, so the plan needs 126 orders. At 126 orders, revenue is $11,970; a 45% contribution leaves $5,386.50, or $36.50 above the requirement.

3. A small team with a larger launch

Suppose a store hires part-time fulfillment help and uses a freelancer for launch work. Its opening cash is:

Registration and legal setup: $400
Store build and copywriting: $1,600
Product samples and photography: $900
Inventory: $12,000
Packaging and equipment: $1,200
Launch advertising: $2,000
Cash buffer: $1,900

The total is $400 + $1,600 + $900 + $12,000 + $1,200 + $2,000 + $1,900 = $20,000.

Monthly fixed costs are $3,400, including the part-time help and ongoing software. Owner pay is $3,000, and target profit is $1,500. The requirement is $3,400 + $3,000 + $1,500 = $7,900. Variable costs are 50% of revenue, so the contribution margin is 50%.

Required revenue is $7,900 ÷ 0.50 = $15,800. At a $120 average order, the store needs $15,800 ÷ $120 = 131.67, which rounds up to 132 orders. Those orders produce $15,840 and a $7,920 contribution, leaving $20 above the requirement.

The same platform can support different cash needs: inventory changes opening cash; wages, owner pay, profit, and margin change the monthly target.

How to run your own numbers

List launch purchases separately from monthly fixed costs. Estimate average order value, variable cost percentage, owner pay, and target profit. Test conservative and optimistic cases. MyBreakeven’s ecommerce break-even calculator lets you enter those assumptions, check the revenue and order demand, and use other currencies besides USD. It is a planning tool based on your inputs, not a prediction or a guarantee.

For related planning, see the MyBreakeven blog, the ecommerce product pricing guide, the ecommerce profit margin breakdown, and the orders-per-day planning guide.

Common mistakes

Calling opening inventory a monthly fixed cost. This inflates the recurring requirement and hides the cash needed before launch. Show opening stock in the startup budget, then model replenishment as a variable cost or a separate cash-flow schedule.

Leaving out owner pay. If the store only works when you work for free, its apparent break-even point is misleading. Add the amount you need to pay yourself, even if you plan to delay withdrawals during the first few months.

Using gross sales instead of contribution margin. Revenue is not the money available for rent, software, pay, and profit. Deduct product cost, transaction fees, shipping subsidies, packaging per order, and other sale-linked costs first.

Treating a launch ad budget as a permanent acquisition plan. A $1,000 launch test does not tell you what customer acquisition will cost every month. Record the test separately, then decide what recurring ad spend your margins can support.

Forgetting cash timing. A supplier may require payment before customer money arrives. A store can show a workable margin and still run out of cash at reorder. Keep a buffer for returns, slow weeks, and taxes.

Rounding down order demand. If the calculation says 52.54 orders, the plan needs 53 orders, not 52. Always round customer or order counts up to a whole unit.