Learn what break-even analysis is, how it works, and how to calculate the break-even point using formulas to assess costs, revenue, and profitability.

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

Break-even is the point at which a small business covers its costs. Break-even quantity refers to the number of units a small business must sell to cover all costs, while break-even revenue refers to ...

BEP shows when an investment recovers costs, crucial for financial planning. To find BEP, sum all investment costs and subtract income received. Knowing BEP helps decide if high initial cost ...

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. In this era of start-ups and unicorns, ...

One useful tool in tracking your business’s cash flow is a break-even analysis. It’s a fairly simple calculation and can prove very helpful in deciding whether to make an equipment purchase or in ...

A contribution margin allows you to determine the profit you generate from each individual product your business sells. The break-even point is the amount of revenue your business must generate to ...