Break-Even Analysis

Calculating the exact point where total revenue equals total costs, where you're neither profitable nor losing money. Every sale above break-even generates profit.

Break-even analysis tells you exactly how many units you need to sell to cover costs. It's essential for pricing, budgeting, and deciding whether a product line is worth pursuing.

A founder's candle business has £2,000/month fixed costs and £8 variable cost per candle sold at £24. Break-even: 125 candles/month. She targets 150 as her minimum viable goal.