The Breakeven Point Formula is the business term used to define when a company’s total revenue and total expenses are equal. It is a financial indicator that helps businesses determine when they have reached their break-even point and can start to turn a profit. To calculate it, an organization needs to know how much its fixed costs are, what its variable costs per unit of production/sales are, and how many units of production/sales they need to cover both their fixed and variable costs. Knowing the breakeven point is crucial for any business as it allows them to understand their financial position and make informed decisions about their operations.