Break-Even Analysis: How to Know When Your Business Starts Making Money

Break-even analysis helps business owners figure out exactly how many units they need to sell before they start turning a profit. By comparing fixed costs, variable costs, and selling price, you can find your break-even point and make smarter decisions about pricing, budgeting, and growth. This guide walks you through the formula, a real-world example, the benefits, limitations, and practical tips to lower your break-even point.