Breakeven Analysis is a tool used by businesses to determine where their total revenue and costs intersect. It gives insight into the amount of product or services that have to be sold in order to start making a profit, and allows business owners to plan ahead. By calculating the breakeven point, businesses can better understand their margin of safety, allowing them to make sound financial decisions and set realistic pricing strategies. In a nutshell, it’s a powerful tool for planning, budgeting and forecasting that can help take any business to the next level.