The point at which the sales and expenses in a business are equal, creating neither a profit nor a loss. This is a very important figure to a business manager. It assists the manager in setting prices that will make the business competitive yet profitable.
Is the level whereby an investor neither profits or loses. It is often used in options and other derivatives trading. Aside from transaction costs such as commissions, fees or spreads, there is usually a premium involved. For example, the breakeven point for a purchase call would be the strike price plus the premium to establish the effective breakeven strike price or breakeven level. In the case of a purchased put, it would be the strike price of the put adjusted by the paid premium. The market has to move down through the strike price by an amount equal to the premium paid. This effectively means that the breakeven level is lower than the contract's exercise price.
the amount of revenue from sales which exactly equals the amount of expense. Breakeven point is often expressed as the number of units that must be sold to produce revenues exactly equal to expenses. Sales above the breakeven point produce a profit; below produces a loss.
As medicine and life extension advances, the life expectancy of the population increases somewhat each year, and this process may accelerate given new technologies or new knowledge. The longer you live, the more medical advances will occur during your lifetime which extend your life expectancy. During this extra time more medical advances can occur, and so on. If the increase of life expectancy becomes larger than one year longer life/year lived the breakeven point is reached (after the fusion physics term for the point where more energy is produced than is used to drive the reactor) and individuals have a finite chance of living indefinitely. Quite naturally the breakeven point presupposes that medical advances never run into any firm barriers, and that they can be developed fast enough, which is of course very speculative. [Anders Sandberg 1997
The underlying securities price at which a given options strategy is neither profitable nor unprofitable. For call options, it is the strike price plus the premium. For put options, it is the strike price minus the premium.
The breakeven point in any business is that point at which the volume of sales or revenues exactly equals total expenses - the point at which there is neither a profit nor loss - under varying levels of activity. The breakeven point tells the manager what level of output or activity is required before the firm can make a profit; reflects the relationship between costs, volume, and profits.