Break Even Analysis | Definition
A Break-Even Analysis is a powerful tool that helps entrepreneurs understand the exact point where their business covers its costs and starts making a profit. It calculates how much revenue you need to generate to match your expenses, giving you a clear target to hit before your business becomes profitable.
For small business owners, this is more than just a financial formula. It is a strategic guide that helps with pricing, budgeting, and decision-making. Whether you are launching a new product, adjusting your pricing, or planning for growth, knowing your break-even point helps you stay financially confident and in control.
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