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Break Even

1. To make the sales or revenues necessary to cover costs and prevent a firm from operating at a loss. The breakeven may be relatively stable or it may fluctuate, depending on the company or industry. Companies with high breakevens tend to have large fluctuations in earnings from year to year.

2. To sell a security at a price that causes the seller to neither make a profit nor lose money on the sale.


1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in earnings.
2. The price at which a security position can be closed out with no profit or loss.
References in periodicals archive ?
Now look at what happens to the breakeven point if the first-time entrepreneur overstates the markup percentage.
If all you want to calculate is the breakeven point and margin of safety, then you could use a more condensed version.
Most insurance cos are yet to reach the breakeven point and are ineligible for launching an IPO under the norms
Using the attached 3-year illustration, for Kim the breakeven point after paying premiums for 30 years (to age 89) would be 82 days of care/benefits.
Today's measures, along with other discretionary spending reductions, will result in approximately $21 million of savings over the next three quarters, and will lower the company's breakeven point to $55 million by the end of the second quarter of 2009, the company said.
But prices are now hovering around EUR40 - below the EUR50-60 breakeven point suggested by BP.
The UK market place remains challenging and the board does not expect that UK sales will exceed the manufacturing breakeven point in 2008.
Iran, with double the population of Saudi Arabia, has a breakeven point of about $100 a barrel, according to Edward Morse, managing director and chief economist at Louis Capital Markets LP in New York.
While, for example, ANA flies to Noto Airport in Ishikawa Prefecture on a regular basis, the prefectural government compensates the airline when the flight service falls below its breakeven point and receives monetary contributions to the program from ANA when the service clears a set ratio of seats occupied to total seating capacity.
New orders and production made significant gains to drive the PMI back above the breakeven point.