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Glossary Finance

Break-even point

The break-even point is the sales volume at which total revenue equals total costs, so profit is zero.

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In more detail

Break-even units = fixed costs / (price − variable cost per unit). With $3,000 of fixed costs, a $50 price and $30 variable cost, you need 150 units.

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See also

  • Glossary Profit margin
    Profit margin is profit as a percentage of the selling price: `(price − cost) / price`.
  • Glossary Markup
    Markup is the amount added to a cost to reach the selling price, expressed as a percentage of the cost: `(price − cost) / cost`.
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