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.”

Break-even Point in Business Glossary - What is a Break-even Point?

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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