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Finance

Break-even

The point where your revenue exactly covers your costs — no profit, no loss. After this, you start making money.

Example

If fixed costs are ₹5,00,000/month and you make ₹250 profit per sale, you break even at 2,000 sales.

Related terms

Burn Rate
How much cash your company spends (beyond what it earns) each month before it becomes profitable.
Gross Margin
The share of each sale left over after the direct cost of making it — before overheads. Higher margins give you more room to grow.

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