Breakeven is a term used in business to describe the point where costs and revenue are equal. It’s the making-or-breaking moment when an organization has to decide whether to continue operating or not. Breakeven is a crucial metric for any company as it helps management assess their risk and make smarter decisions about their operations. Put simply, breakeven is the minimum sales volume needed for a business to stay afloat. To reach breakeven, businesses need to take into account their fixed costs such as rent, wages, and insurance and then factor in their variable costs such as raw materials. Once they know how much they need to sell, they can decide whether to press on or shut down. Breakeven isn’t just important for entrepreneurs – it’s vital!