The Break-Even Point is a core idea in business. Simply put, it's the moment when your total sales money matches your total costs. At this point, your business isn't making a profit, but it's not losing money either. You've covered all your expenses. Reaching this point means your business can support itself. Any sales you make after you hit your break-even point directly add to your profit. Simple Example: Imagine you run a small T-shirt printing business: 1️⃣ You sell each T-shirt for $20. 2️⃣ The materials and direct labor for each T-shirt cost you $8 (your variable cost). 3️⃣ Your monthly fixed costs (like rent for your shop, or design software) are $1,200. 4️⃣ Money made per T-shirt after its own cost: $20 (Selling Price) - $8 (Variable Cost) = $12 5️⃣ Break-Even Point (in T-shirts): $1,200 (Fixed Costs) / $12 (Money made per T-shirt) = 100 T-shirts This means you need to sell 100 T-shirts each month just to cover all your costs. Every T-shirt sold after the 100th one puts money directly into your pocket as profit. Knowing your Break-Even Point takes away the guesswork and gives you a clear target for success.