Break-Even Point
The break-even point is the time at which your business revenue will equal total expenses -- the point at which there is neither a profit nor loss. A breakeven analysis is used to determine when your business will be able to cover all your expenses. To calculate your break-even point, forecast your expected fixed costs [1] (usually include overhead expenses like rent or payroll) and variable costs [2] (expenses that can shift like inventory [3] or shipping), and compare to your expected total revenue over time.