A Break-Even Calculation is a powerful financial tool used to determine when a business will begin to make a profit. Put simply, break-even calculation measures how much money needs to be made before income equals expenses. By doing some simple math, businesses can determine the point at which their investments start paying off. For instance, if a company invests $50,000 in new equipment and needs to generate $60,000 in sales to cover their costs, then it will need to reach that $60,000 mark before they start making a profit. Knowing this information is essential for any company looking to stay in business. With break-even analysis, businesses can set realistic goals and determine what level of success they should shoot for. It’s an invaluable financial resource that can help businesses make informed decisions that lead to long-term success.