A break-even analysis can help you determine the future success of your business — or even a single product. Learn how to use it in your operations.

The break-even point (BEP) and break-even analysis are related financial concepts used to assess a business's financial health.

Learn how to calculate the break-even point and show it on a chart of cost and revenue against output to predict cash flow and profit.

Break-even point analysis is used to determine the point at which a venture or investment is neither at a profit nor a loss position. Break-even points often carry technical significance.

Break-even analysis also can be used to calculate break-evensales needed for the other variables in the equation.

The Weatherhead School of Management, part of Case Western Reserve University, provides a succinct definition of break-even analysis on its Web site of the same name: “On the surface, break-even ...