Define break-even. break-even synonyms, break-even pronunciation, break-even translation, English dictionary definition of break-even. or break-e·ven adj. Marked by or indicating a balance, especially between investment and return. n. 1. The point, espe
Business break-even = gross profit margin / fixed costs For an options contract, such as a call or a put, the break-even price is that level in the underlying security that fully covers the option's premium (or cost). Also known as the break-even point (BEP), it can be ...
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 ...
break even : to achieve a balance especially : to operate a business or enterprise without either loss or profit break free : to get away by overcoming restraints or constraints break ground 1 : to begin construction breaking ground on a new wing of the hospital 2 or break new ...
In conclusion, break-even analysis is an indispensable tool in the arsenal of any business seeking to understand its financial dynamics better. Throughout this blog, we've explored the multifaceted aspects of break-even analysis, from its basic definition to the practical steps of calculation. ...
Break-even point: definition and calculation If you’re trying to determine when your new business will start making a profit, then the break-even point (BEP) is the crucial metric for you, as it serves as a basis for profit planning and control within a company. To calculate your BEP,...
Break-Even Point Definition The Break-even point (BEP) is the level of production where the company’s total revenues and expenses are equal. At the BEP, the revenue of the company by the sale of manufactured products is equal to the total costs incurred in manufacturing the product. In ac...
With these pieces of information, a business can calculate their break-even point - how many units must they sell to pay their bills. The formula is:Fixed costs / (Sale Price - Variable Costs)Any sales over that number would be the profit. Read Break-Even Analysis: Definition & Example ...
Entrepreneurs: Break-Even analysis is useful for entrepreneurs and founders because it helps determine the minimum level of sales needed to cover costs. This is critical for the early stage of a business. Financial Analysts: These professionals use break-even analysis as a profitab...
Note:Most businesses won't pursue endeavours that settle near the break-even point. Managers are unlikely to take a business risk unless there's a high likelihood of an attractive level of anticipated profits. Most businesses will pursue a certaininternal rate of returnon projects before deeming...