break-even point: meaning, definition, pronunciation and examples
C1Formal, Technical (Business/Finance)
Quick answer
What does “break-even point” mean?
The level of sales or production at which total revenue equals total costs, resulting in neither profit nor loss.
Audio
Pronunciation
Definition
Meaning and Definition
The level of sales or production at which total revenue equals total costs, resulting in neither profit nor loss.
A critical threshold in any project or activity where gains balance out losses or efforts; a point of equilibrium in financial or metaphorical terms.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences; both use the compound noun identically. The verb 'to break even' is also identical.
Connotations
Identical technical/business connotations in both varieties.
Frequency
Slightly more frequent in American business English due to a larger volume of business media, but the term is standard and common in both.
Grammar
How to Use “break-even point” in a Sentence
[Company/Product] reached its break-even point in [time period].The break-even point for [project] is [quantity/amount].We need to calculate the break-even point.Vocabulary
Collocations
Examples
Examples of “break-even point” in a Sentence
verb
British English
- The startup hopes to break even by the fourth quarter.
- We need to sell 200 more units to break even.
American English
- The new product line is projected to break even within six months.
- After the investment, they finally broke even.
adverb
British English
- Not applicable. 'Break-even' is not used as an adverb.
American English
- Not applicable. 'Break-even' is not used as an adverb.
adjective
British English
- They conducted a breakeven analysis for the new division.
- Our breakeven sales figure is quite high.
American English
- The breakeven chart showed a steep cost curve.
- What's the project's breakeven volume?
Usage
Meaning in Context
Business
Essential for financial planning, pricing strategies, and assessing startup viability. E.g., 'Our break-even point is 5,000 units per month.'
Academic
Used in economics, finance, and business studies textbooks and papers to model cost behaviour.
Everyday
Rare in casual conversation; may be used metaphorically for personal finance (e.g., 'My side hustle hasn't reached its break-even point yet.').
Technical
A precise financial metric calculated with fixed and variable costs: BEP = Fixed Costs / (Unit Price - Variable Cost per Unit).
Vocabulary
Synonyms of “break-even point”
Strong
Neutral
Weak
Vocabulary
Antonyms of “break-even point”
Watch out
Common Mistakes When Using “break-even point”
- Using it as an uncountable noun (e.g., 'We are at break-even point' – better: 'at *the* break-even point').
- Confusing it with 'breakeven' used adjectivally (e.g., 'breakeven analysis').
- Spelling as 'brake-even point'.
FAQ
Frequently Asked Questions
As a noun phrase, it is typically written as three words: 'break-even point'. The adjectival form is often hyphenated: 'breakeven analysis' or 'break-even analysis'.
Yes, metaphorically. For example, in personal fitness: 'The break-even point for my diet is when the calories I burn equal the calories I consume.'
Break-Even Point (units) = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).
'Break-even point' is the specific noun for the threshold. 'Breakeven' (or 'break-even') is primarily used as an adjective (breakeven price) or as part of the verb phrase 'to break even'.
The level of sales or production at which total revenue equals total costs, resulting in neither profit nor loss.
Break-even point is usually formal, technical (business/finance) in register.
Break-even point: in British English it is pronounced /ˌbreɪk ˈiːvn ˌpɔɪnt/, and in American English it is pronounced /ˌbreɪk ˈiːvən ˌpɔɪnt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “turn the corner (metaphorically similar)”
- “get out of the red”
Learning
Memory Aids
Mnemonic
Imagine a set of scales: one side is TOTAL COSTS, the other is TOTAL REVENUE. The 'break-even point' is the moment you add enough revenue to make the scales level (EVEN) and they BREAK from being tilted toward loss.
Conceptual Metaphor
BUSINESS IS A JOURNEY (reaching a point/milestone); FINANCE IS PHYSICS (a point of balance/equilibrium).
Practice
Quiz
What does reaching the 'break-even point' signify for a business?