Definition

Break-even point

The break-even point is the level of sales or output at which revenue exactly covers costs, so the profit is zero and everything beyond it is profit.

It is most useful as a distance rather than a number: how far current sales are from it tells you how much room there is before a business starts losing money.

← All glossary terms

Share this definition

Send it to someone who asked what this means.

Your browser blocked the clipboard - select the link above and copy it manually.

We use essential cookies to run this site. Optional partners (advertising and analytics) only load if you accept them. See our Privacy Policy.