In economics and business, specifically cost accounting, 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". ... In the linear case the break-even point is equal to the fixed costs divided by the contribution margin per unit.

What does taking a break even mean?

: the point at which cost and income are equal and there is neither profit nor loss also : a financial result reflecting neither profit nor loss.

What does break even mean example?

In general, a company with lower fixed costs will have a lower break-even point of sale. For example, a company with $0 of fixed costs will automatically have broken even upon the sale of the first product assuming variable costs do not exceed sales revenue.