Break-even finance is a business concept that helps organizations and companies determine when their expenses will be equal to their income. Put simply, it’s the point at which an organization begins to make money rather than spend it—the goal of anyone in business. To understand break-even finance, you must first understand what fixed costs and variable costs are. Fixed costs are those that stay the same regardless of how much or how little product/service is sold, like rent or insurance, while variable costs fluctuate according to production, such as labor and material costs. With clear, manageable estimates of both fixed and variable costs, managers can chart a course to profitability through Break-even Finance.