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.
What Is the Break-Even Point, and How Do You Calculate It?
Last Updated By
Andrew Freiman | Mar 01, 2023