In business, the break-even point is when the level of income is equal to the level of expenses. The business has not generated a profit nor has it generated a loss.
The break-even point (referred to as BEP) occurs when a business reaches the level where total income is equal to 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.
What Is the Break-Even Point?