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break-even

the point where revenue first covers costs

In Business & Marketing

In more detail

1. (noun) the point at which income equals costs, so there is neither profit nor loss

2. (adjective) relating to a situation where income equals costs

Examples

• 1. The company reached break-even after two years in business.
• 2. They're hoping to hit break-even point by the end of the year.

How to use break-even

Break-even refers to the critical moment or threshold when a business or project recovers its costs without making a profit or loss. It is commonly used in business and financial contexts to discuss when investments become viable, and is essential in planning and financial projections. The hyphenated noun form is more formal than the unhyphenated verb phrase.

Register: formal

Common phrases

• break-even point
• reach break-even
• break-even analysis
• break-even volume
• break-even price

Synonyms

equilibrium · balance point · zero profit point · cost recovery

Word family

break even (verb phrase)

A common mistake

Learners sometimes use break-even to mean simply breaking even in competition or a game, when it has a specific technical meaning in business accounting.

Nearby in Business & Marketing

barriers to entry, bottom line, brainstorming, burn rate, buyout, cannibalization

Keep going

How to remember the words you read · Spaced repetition, explained