Financial break-even is an important concept in the business world. It is a way of calculating the total revenue needed to cover all costs associated with running a business. This includes fixed and variable costs such as rent, labour, raw materials, machines and other resources. When the total revenue earned is equal to the costs of running the business, then you have reached financial break-even. Not only does this tell you whether your business has covered its expenses but it also shows you how much sales you need to make before generating a profit. Knowing your financial break-even point is essential for planning how your company grows and achieves success.