Break-Even Analysis


The concept explains the relationship between cost volume and profits at various levels of activity, it reviews different methods for calculating the break-even point and presents useful evidence on how the break-even analysis has been used through real case examples.

Technique Overview

Break-Even Analysis

Break-Even Analysis Definition

Break-even analysis establishes the point at which total revenue equals total costs (Needles et al., 2010). It is expressed as the sales quantity (in units) and revenue at which the company or project will start making profits. At the break-even point of sales the company has covered both fixed costs and also the variable costs associated with those sales, and hence any further sales associated with the project, investment or indeed company will yield a net profit.

Break-Even Analysis Description *

* The full technique overview is available for free. Simply login to our business management platform, and learn all about Break-Even Analysis.

Business Evidence

Break-Even Analysis Strengths *

Break-Even Analysis Weaknesses *

Examples of Break-Even Analysis *

* The business evidence section is for premium members only. Please contact us about accessing the Business Evidence.

Business Application

Break-Even Analysis Implementation *

Success Factors of Break-Even Analysis *

Measures of Break-Even Analysis *

* The business application section is for premium members only. Please contact us about accessing the Business application.

Professional Tools

Break-Even Analysis Videos *

Break-Even Analysis Downloads *

* The professional tools section is for premium members only. Please contact us about accessing the professional tools.

Further Reading

Break-Even Analysis Web Resources *

Break-Even Analysis Print Resources *

Break-Even Analysis References (4 of up to 20) *

  • Agarwal, R.D. (1983) Organization and Management. Tata McGraw-Hill Education.
  • Airline Business (2004) BA Expects to Break Even in Europe. Mar, 20(3), p.16.
  • Austin, E.H., Edmonds, H.L., Auden, S.M., Seremet, V., Niznik, G., Sehic, A., Sowell, M.K., Cheppo, C.D., Corlett, K.M. (1997) Benefit of Neurophysiologic Monitoring for Pediatric Cardiac Surgery. The Journal of Thoracic and Cardiovascular Surgery, 114(5), pp.707-717.
  • Brealey, R.A., Myers, S.C. (2003) Capital Investment and Valuation. McGraw-Hill Professional.

* The further reading section is for premium members only. Please contact us about accessing the further reading.


Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Break-Even Analysis and hundreds of other essential business management techniques

Other members were also interested in...

Related Concept: Neuroscience

Neuroscience offers a deep understanding of the way we think and act. Case studies present the solutions adopted by companies to implement these new findings in their organisation, improving performances and results.