The break-even point (break-even price) for a trade or investment is determined by comparing it to the market value of the underlying asset; When the two values ​​are equal, the breakaway point is reached.

In corporate accounting, the breakaway point formula is determined by the variable cost per unit divided by the total fixed cost associated with production divided by the revenue per unit. In this case, specific costs refer to them which do not vary depending on the number of units sold. In other words, the break even point is the level of production where the total income of a product is equal to the total cost.