What is Break-even Point?
A definition of Break-even Point
“The break-even point is the stage at which total revenues equal total costs, leading to neither profit nor loss. It is a critical measure for determining when a business becomes financially sustainable.”

Business Glossary > What is Break-even Point?
Examples of Break-even Point in a Sentence:
The company reached its break-even point after six months.
Understanding the break-even point helped the startup plan its finances.
You need to calculate the break-even point before launching a new product.
Why is Break-even Point Important in Business?
Identifying the break-even point is essential for businesses to ensure they cover all costs before making a profit. It aids in pricing strategies, budgeting, and financial forecasting, helping businesses plan their path to profitability effectively.
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Associated Terms
Here are some associated business terms and synonyms for “Break-even Point”:
- Breakeven Analysis
- Equilibrium Point
- No-profit No-loss Point
Amazon Break-even Point
Amazon reached its break-even point in the late 1990s after years of investment and growth. By pioneering innovative solutions in e-commerce, Amazon successfully crossed this threshold, leading to its continued expansion and dominance in the market.
Final Notes on Break-even Point
When calculating the break-even point, businesses should take into account:
- Fixed and variable costs
- Pricing strategies
- Sales volume required for profitability
Understanding these elements will aid in strategic planning and financial stability.
This has been a definition of Break-even Point meaning.
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