Simple Math to Estimate If and When your Business will Make a Profit: Break-Even Analysis

Break-even Analysis

Break-Even Analysis is a simple tool to estimate if your business idea will break even or not and how many units you have to sell before this happens. It is also used as a tool to tell you the price you need to sell your product or service for.

At Break-even point, you have covered all of your expenses, but no profit has yet been made, or when your total sales equal total expenses.