Definition
Break-even point
The point at which revenue covers costs and profit is zero. For a single product it is the price or the number of units at which the money coming in equals the money going out, including fees taken from each sale.
It is the most important figure to know before setting a price, because any price below break-even loses money on every sale, and a busy month at a loss is worse than a quiet one.
Tools that use this term
Break Even Calculator
Find the number of units a stall, a range or a workshop has to sell to cover its fixed costs, after fees.
Profit Margin Calculator
See the difference between a margin and a markup on the same cost, and price from either one deliberately.
Craft Fair Profit Calculator
Work out whether a craft fair is worth doing, from the stall fee and the travel to the profit per sale.