Break-Even Analysis (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

A calculation to determine the point at which your revenues equal your costs, meaning you’re not making a profit or a loss.

What to consider

Determine when your revenues will cover your costs.
Differentiate between fixed and variable expenses.
Use this analysis to set realistic pricing or sales targets.

Real world scenarios

Before launching her new product, Emily performed a break-even analysis to figure out how many units she needed to sell to cover all costs.

Related terms

Investments & Retirement

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