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A break-even analysis compares sales to fixed costs, and its components are fixed costs, variable costs, revenue, contribution margin, and the break-even point (BEP). Learn the formula and graphical representation of break - even analysis, which is the point at which total costs and total revenue are equal. Find out how to use break - even analysis for sensitivity and scenario analysis in financial modeling. Break-even point The Break-Even Point The break-even point (BEP) in economics, business —and specifically cost accounting —is the point at which total cost and total revenue are equal, i.e. " even ". Break- Even Point (BEP) is the inflection point at which a company starts to generate a profit, as its revenue is equal to its total costs.
