Do You Know Your Business’s Break-Even Point?
Running a successful business isn’t just about making sales — it’s about knowing your numbers. And one of the most important numbers any business owner should understand is their break-even point.
At Exchange Accountants, we believe that financial clarity is the foundation of confident decision-making. Whether you’re a start-up or an established SME, understanding your break-even point can provide essential insight into pricing, growth, and long-term sustainability.
What is a Break-Even Point?
Your break-even point is the moment where your total income equals your total costs. At this point, you’re not making a profit — but you’re not making a loss either.
In simple terms, it’s the amount of revenue you need to cover all your fixed and variable expenses. Anything you earn beyond that point is profit.
For example, if your business’s fixed costs (like rent, insurance, salaries) are £5,000 a month, and your average profit per sale is £100, you’d need to make 50 sales just to break even.
Why Does the Break-Even Point Matter?
Knowing your break-even point gives you control. It helps you:
Set informed pricing – understand how much you need to charge per product or service to cover your costs.
Monitor business health – assess whether your current performance is sustainable.
Plan for growth – use your break-even point as a benchmark to forecast profits or expand with confidence.
Improve cash flow management – identify slow periods and plan for them in advance.
Reduce financial stress – knowing your exact numbers helps you make decisions with less guesswork.
How Exchange Accountants Can Help
At Exchange, we work closely with small businesses across Northern Ireland and beyond to help them truly understand the financial side of their business.
Here’s how we can support you:
Break-even analysis – We’ll calculate your break-even point, review your pricing model, and help you identify areas for improvement.
Profitability forecasting – Using tools like Xero, we’ll help you plan for different scenarios and see how your break-even point shifts as your costs or prices change.
Financial health check – Not sure where to begin? We’ll sit down with you, look at your costs, revenue streams, and build a clear picture of your financial foundation.
Whether you’re planning a new product launch, thinking about hiring, or just trying to better understand your margins — knowing your break-even point is a great place to start.
Ready to take control of your numbers?
Book a discovery call with the Exchange team today and let’s break it down together. Contact us today.
