# Break-Even Analysis

*Accounting & Reporting — Finicade finance glossary*

Break-even analysis finds the sales volume at which total revenue covers total cost. It converts a business plan into a single testable number — how many units, how many customers — which is usually more revealing than the projected profit. The gap between expected volume and break-even volume is the margin of safety, and a thin one means the plan depends on everything going right.

**Formula:** `Break-even units = Fixed costs ÷ Contribution margin per unit`

**Also known as:** break even point, breakeven volume

**Related terms:** [Contribution Margin](https://finicade.com/glossary/contribution-margin), [Fixed vs Variable Costs](https://finicade.com/glossary/fixed-vs-variable-costs), [Operating Leverage](https://finicade.com/glossary/operating-leverage), [Capital Budgeting](https://finicade.com/glossary/capital-budgeting)

Source: https://finicade.com/glossary/break-even-analysis