Overview
Your break-even point is the moment when your business generates just enough revenue to cover all of its expenses. On the Break-even Analysis page, it is visually represented by the intersection of two key lines:
Green Gross Profit Line: Indicates your revenue.
Red Total Expenses Line: Represents your business expenses.
How to Locate Your Break-even Point
Go to the Break-even Analysis Page:
Navigate to the Break-even Analysis page within your Projection Genie account.Identify the Intersection:
Look for the point where the green gross profit line crosses the red total expenses line. This intersection marks your break-even point.Interpret the Graph:
If the Lines Intersect:
The crossing point indicates that your revenue equals your expenses—your business breaks even.If the Lines Never Intersect:
This suggests one of two scenarios:Your business does not break-even at any point.
Alternatively, if the green gross profit line always remains above the red expenses line from the start, your business is consistently profitable.
What If Your Business Never Breaks Even?
If your projections show that the green gross profit line never rises above the red expenses line, your business will remain unprofitable. To address this:
Reduce Expenses: Consider cutting costs where possible.
Increase Revenue: Look for strategies to boost your sales or revenue streams.
Once your green gross profit line ascends above your red expenses line, your business begins to make a profit.
Visual Reference
For a visual guide, please refer to the image below:
TIP:
We make it easier for you to identify your break-even point by placing an annotation when and where it occurs as shown in the image above and zoomed in for reference:
