What is break-even analysis conceptually?

< 1 min read

Break-even analysis is the process of identifying the point where total revenue equals total cost, meaning no profit and no loss.
In one project, I supported finance in calculating break-even for a new product launch.
We considered fixed costs like marketing and setup, and variable cost per unit.
For example, if fixed cost was ₹5 lakhs and contribution per unit was ₹500, we needed to sell 1,000 units to break even.
I created a simple model in Excel to simulate different pricing scenarios.
This helped stakeholders understand minimum sales targets before approving launch.
It also supported forecasting and risk assessment discussions.
Break-even analysis helps in pricing decisions and evaluating business viability.

Power BI Essentials