what is the breakeven point bep 
in corporate accounting the breakeven point bep is the moment a company s operations stop being unprofitable and starts to earn a profit the breakeven point is the production level at which total revenues for a product equal total expenses 1 the breakeven point can also be used in other ways across finance such as in trading investopedia nez riazunderstanding breakeven pointsa breakeven point can be applied to a wide variety of contexts for instance the breakeven point in a property would be how much money the homeowner would need to generate from a sale to exactly offset the net purchase price inclusive of closing costs taxes fees insurance and interest paid on the mortgage as well as costs related to maintenance and home improvements at that breakeven price the homeowner would exactly break even neither making nor losing any money traders also apply beps to trades figuring out what price a security must reach to exactly cover all costs associated with a trade including taxes commissions management fees and so on a company s breakeven point is likewise calculated by taking fixed costs and dividing that figure by the gross profit margin percentage business breakeven pointsthe breakeven formula for a business provides a dollar figure that is needed to break even this can be converted into units by calculating the contribution margin unit sale price less variable costs dividing the fixed costs by the contribution margin will reveal how many units are needed to break even business breakeven fixed costs gross profit margin begin aligned text business breakeven frac text fixed costs text gross profit margin end aligned business breakeven gross profit marginfixed costs 