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Breakeven Chart

oboloo Glossary

Breakeven Chart

A Breakeven Chart is a tool used by business owners to help visually display the point at which their profits match their expenses. The chart plots fixed costs, variable costs, and total costs as they relate to revenue earned in units or sales dollars. This helps business owners identify the number of units or sales dollars they must generate in order to cover all costs and make zero profit, also known as the breakeven point. The Breakeven Chart is an invaluable tool for businesses of all sizes—by understanding their breakeven point, companies can ensure they are taking the most cost-effective approach to production and maximize their profitability.

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