The Break-Even Formula for Sales Revenue is the point at which your total sales revenue reaches parity with your total costs. In other words, it’s the moment when your business’s income equals its expenses and you no longer have to worry about whether or not you’re making a profit. This formula can help you judge how successful your current strategies are for increasing sales by showing you how many sales you need to make in order to cover all of your costs. By understanding this formula, you’ll also be able to identify any cost cutting measures that could improve your bottom line.