Break-Even Point

The point at which your revenue equals your total costs. You are neither making a profit nor a loss. Every sale beyond break-even is pure profit.

Knowing your break-even point tells you the minimum you need to sell to stay in business. It gives you a concrete target to work towards.

Your monthly fixed costs are £1,000 (hosting, subscriptions, etc.) and each product costs £10 to make and sells for £30. You need to sell 50 units to break even.