A break-even analysis is a simple calculation to ensure a business will break-even and at least cover costs, it allows the business to see at what point, either time or units etc the business becomes profitable.

How can you calculate your BEP? (From The Australian Business Planning Guide by David Bangs)

The basic formula is this:
BEP = FC + VCBEP= break-even of sales in dollars 
FC= Fixed costs in dollars (rent, salaries etc) 
VC= Variable costs in terms of dollars (cogs, commission etc)Note: In Swim®, the break even figure is given in the break even report under financial reports