Break-even Point
Ron explains in 60-seconds with no BS
So what is a break-even point, really?
The break-even point is when your revenue exactly equals your expenses: no profit, no loss, just covering your costs. It’s the point where your business stops bleeding money and starts holding its own. You’re not winning yet, but you’re no longer falling behind.
Knowing your break-even point helps you price smarter, plan better, and figure out how long you can afford to keep going. It tells you how much you need to sell to stop running at a loss and how far you are from making real money.
Whether you’re launching a product, opening a store, or running a service, break-even isn’t just a milestone - it’s a survival checkpoint.
Your influencer campaign may look cute, but if it doesn’t help you hit break-even? It’s just expensive flirting.
How people actually use it in a sentence...
“Nina sold out her first launch, but after adding up production and shipping, she still hadn’t hit break-even… just burnout.”
Did you know...
Break-even analysis became a staple tool during the 1930s, when businesses needed fast, simple ways to survive the Great Depression.
At that point, it wasn’t about profit… it was about staying alive long enough to even have that conversation.
Want the textbook definition? Check out Brand on Investopedia.com