Breakeven: meaning, definitions and examples
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breakeven
[ ˌbreɪkˈiːvən ]
finance term
Breakeven refers to the point at which total revenues equal total costs, resulting in neither profit nor loss. It's a critical concept in various financial analyses, particularly for businesses to determine the minimum performance required to avoid losing money. This analysis is essential for pricing strategies, budgeting, and forecasting. Businesses often use breakeven analysis to evaluate the feasibility of new projects or to understand the impact of changes in cost or pricing.
Synonyms
break-even point, no profit no loss
Examples of usage
- We need to calculate our breakeven point for the new product.
- The breakeven analysis showed we needed to sell 500 units.
- Achieving breakeven is crucial for startups.
Translations
Translations of the word "breakeven" in other languages:
🇵🇹 ponto de equilíbrio
🇮🇳 तटस्थ बिंदु
🇩🇪 Break-even
🇮🇩 titik impas
🇺🇦 точка беззбитковості
🇵🇱 punkt równowagi
🇯🇵 損益分岐点
🇫🇷 seuil de rentabilité
🇪🇸 punto de equilibrio
🇹🇷 başabaş noktası
🇰🇷 손익 분기점
🇸🇦 نقطة التعادل
🇨🇿 bod zvratu
🇸🇰 bod zlomu
🇨🇳 盈亏平衡点
🇸🇮 točka breakeven
🇮🇸 jafnvægispunktur
🇰🇿 нөлдік пайда нүктесі
🇬🇪 წერტილი თანაფარდობის
🇦🇿 bərabərlik nöqtəsi
🇲🇽 punto de equilibrio
Etymology
The term 'breakeven' emerged in the financial lexicon during the 20th century, representing a significant concept in economics and business. It combines 'break' and 'even,' where 'break' signifies the cessation of a certain condition and 'even' implies an equality or balance. Originally associated with financial transactions and accounting, it gained popularity as businesses sought clearer analyses of their operating thresholds. As economies evolved, the breakeven point became a standard metric used in various industries to assess the viability and sustainability of operations, reflecting broader economic conditions and consumer behavior.