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DescriptionIn business, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been paid, and capital has received the risk-adjusted, expected return.
A business manager or owner need to know the required sales volume or minimum possible selling price(at fixed sales volume) at which his business is going to break even.
The break-even point is one of the simplest yet least used analytical tools in management. It helps to provide a dynamic view of the relationships between sales, costs and profits. A better understanding of break-even, for example, is expressing break-even sales as a percentage of actual sales—can give managers a chance to understand when to expect to break even (by linking the percent to when in the week/month this percent of sales might occur).
The break-even point is a special case of Target Income Sales, where Target Income is 0 (breaking even).
This app helps you to find the Break Even Point of your business(single product or multiple product,fixed price or fixed sales volume).