BREAKEVEN FORMULA
\bɹˈe͡ɪkɛvən fˈɔːmjʊlə], \bɹˈeɪkɛvən fˈɔːmjʊlə], \b_ɹ_ˈeɪ_k_ɛ_v_ə_n f_ˈɔː_m_j_ʊ_l_ə]\
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An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. This is the amount that revenues can fall while still staying above the break-even point.
By Henry Campbell Black
