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A break-even point (BEP) is the amount of units you have to sell at a given price in order to cover your costs. In other words, it’s the number of sales that constitutes “breaking even” for your company because that figure represents the amount of income you’ll have earned off of your investment when it comes to launching and marketing a new product.
A break-even analysis calculates all of the costs involved in starting up a new project, service or product and compares the unit sell price to determine the point at which you will be able to recuperate your costs by selling enough units.