breakeven (reads breikiven) is an English expression for a breakeven point in business in which there is neither loss nor gain, neither profit nor loss.
For the investor, the break-even is the point at which he stops losing money and starts to gain and balance the invested capital. It is considered that at this point there is no gain or loss.
The expression Break-even Point (BEP) is used in Economics and Finance to indicate the break-even point between a company's expenses and revenues. When the calculations indicate that the company has reached the break-even point, it means that the total costs and expenses are equal to the total income, that is, the company has neither made a profit nor a loss.
Above that point, the company's results will be positive and indicate profit, as all expenses are paid and there is still revenue left over. On the other hand, if the company's accounts indicate values below the break-even point, it means that the income obtained was not sufficient to pay costs and expenses, then there is a loss.
O Break-even Point It is an important tool for the company, as it not only allows the feasibility of a business to be analyzed, but also allows for the control of results.