Breakeven Meaning and Definition

Pronunciation

/ˈbrɛk.eɪvɛn/ 🔊

Part of Speech

Noun

Definition

A point at which a project, investment, or activity becomes profitable or financially solvent, typically by covering costs and generating a profit.

Examples

• The company reached breakeven after the new marketing strategy was implemented.
• After years of losses, the small business finally reached breakeven.

Synonyms

• Profit
• Break-even point

Antonyms

• Loss
• Bubble

Additional Information

Breakeven is a critical point for businesses, as it marks the transition from financial losses to profitability. It’s typically measured by comparing revenue to costs, and can be used as a benchmark for evaluating investment decisions. Breakeven can also be used in personal finance, such as calculating the cost of a mortgage or loan. In some cases, breakeven can be a temporary achievement, and businesses may need to continually adapt and innovate to maintain profitability.

Breakeven is often achieved through a combination of reducing costs, increasing revenue, or finding new sources of income. It requires careful planning, budgeting, and execution to achieve.

Etymology

The term “breakeven” is derived from the idea of breaking even, or attaining a state of balance or equilibrium, in financial terms.

Usage Notes

Breakeven is typically used in a business or financial context, but it can also be applied to personal finance or investment decisions.

Cultural References

Breakeven has been featured in various media, such as business publications, financial news, and even popular culture, such as movies and TV shows.

Idiomatic Expressions or Phrases

Some common idioms or phrases that include the word “breakeven” include:

• “Reach breakeven”
• “Stay breakeven”
• “Breakeven point”

Related Words or Phrases

Some related words or phrases that are closely associated with “breakeven” include:

• Profit
• Loss
• Revenue
• Costs

Collocations

Some common collocations with “breakeven” include:

• “Breakeven deadline”
• “Breakeven point”
• “Breakeven analysis”

Frequency of Use

Breakeven is a commonly used term in business and financial circles, especially in reports, articles, and presentations.

Common Misspellings

Some common misspellings of “breakeven” include:

• Break even
• Brokeen
• Brakeven