The break-even point is the number of units (or amount of revenue) at which a business covers all of its costs exactly — zero profit, zero loss. It’s found by dividing fixed costs by the contribution margin per unit (price minus variable cost).
Break-even analysis is a first test of business viability: if the break-even volume is unrealistic for your market, the pricing or cost structure must change before anything else matters.
Run your own numbers in the Break-Even Point Calculator.