Overview of the Break-Even Point

A detailed tutorial on the break-even point. Step by step tutorial including several examples of the break-even point for reference.

The break-even point is used very often in business math and accounting, and first appears in basic algebra classes. The break-even point is where the cost of something equals the revenue. In other words, the break-even point is where there is no profit lost or gained on a transaction. Most businesses aim to get above the break-even point, although they will at least aim for it so they do not fall below it.