The Financial Break Even Point is a key metric used to assess the financial health of businesses. It is typically referred to as the zero-profit point, and it represents the point at which expenses are equal to revenue. That is, any revenue earned beyond the break-even point marks a positive return on investment, while falling below means losses. In simple terms, the Financial Break Even Point is the amount of sales businesses must generate in order to cover their costs – no more, no less. Knowing this figure is critical for companies to make sure they don’t spend too much money on operations or set prices that will not bring them in enough revenue to stay afloat.