What is Break-Even Point?
The break-even point is the level of sales at which total revenue exactly equals total costs, fixed and variable, so the business makes neither a profit nor a loss.
A real Kenyan example
A kiosk with KES 30,000 monthly fixed costs and a 40% contribution margin per item needs KES 75,000 in sales a month to break even.
Formula
Break-even sales = Fixed costs ÷ Contribution margin %
Why it matters
Knowing your break-even point tells you the minimum you must sell before you are running the business for profit rather than just for survival, and how a price or cost change moves that line.
How Veira helps
Veira tracks your fixed and variable costs and sales in real time, so you always know how far above or below break-even you are.
FAQs
What is a break-even point in simple terms?
The point where your sales cover all your costs exactly, with nothing left over and no loss.
How do I lower my break-even point?
Cut fixed costs, raise your margin per sale, or both. Either reduces how much you need to sell before you turn a profit.
Is break-even the same as profit?
No. Break-even is zero profit. Every shilling of sales above the break-even point becomes profit.
Does break-even change with price?
Yes. Raising price increases your contribution margin per unit, which lowers the sales volume needed to break even, as long as demand holds.
Can Veira calculate my break-even point?
Yes, use the free break-even calculator with your own fixed costs, price and variable cost per unit.