Definition of Break-even | Break-even Point Information

Accounting Definitions

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Break-Even Definition

The break-even point happens when a business’s total income equals its total expenses. The business has not generated a profit, nor has it generated a loss.

Break-Even Point Expanded Definition:
The break-even point (referred to as BEP) occurs when a business reaches the level where total income equals total expenses.

Many businesses lose money during the first few years of operation. When the break-even point is achieved, it can be seen as a positive indicator of future profitability.

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What Is the Break-Even Point, and How Do You Calculate It? | Patriot Software

Last Updated By

Andrew Freiman | Mar 01, 2023

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