Break-even is a launch-day question
Before publishing, every author should know exactly how many books they need to sell to recover their cash investment. This single number determines whether your launch budget is realistic or fantasy. A $2,000 launch with $3 net profit per book requires 667 sales — achievable in 6 months for a good book in a healthy niche, but a 3-year project in a saturated one.
What counts as fixed cost
Include developmental editing, copy edit, proofread, cover design, interior formatting, ISBN if you bought one, ARC distribution and any launch promotion (Bookbub, Freebooksy). Don't include your own time unless you want a true full-cost figure for opportunity-cost comparison.
Speeding up break-even
Three levers reduce time-to-break-even: lower the fixed cost (DIY cover for a non-fiction lead magnet), raise net profit per book (higher list price or tighter ads), or increase sales velocity (KU enrollment, launch promo stacks). The biggest lever is usually price — a $2 price bump on 500 sales recovers $1,000 instantly.
When to walk away
If your break-even calculation shows more than 24 months at realistic sales velocity, either restructure your launch budget or pick a different niche. Sunk-cost thinking destroys more indie authors than bad writing.
Frequently asked questions
Should I include the cost of my time?
For pure cash break-even, no. For real ROI on your hours, add it — many authors value their time at $25–$75/hour.
Is break-even before or after tax?
Before. Add 15–30% to your fixed cost if you want a tax-inclusive figure.
What if my net profit per book is negative?
You'll never break even at current prices/ads. Raise the price, cut ad spend, or accept this as a portfolio loss leader.
Do KU pages-read count?
Yes — divide monthly KENP earnings by units-equivalent and add to royalty per book.