FINANCE GLOSSARY
Break-even
Break-even Point
The sales or occupancy level where revenue equals total costs.
What does Break-even mean?
The sales or occupancy level where revenue equals total costs. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Break-even in context
A property breaks even when collected rent covers operating expenses and debt service.
Why it matters in financing
Break-even can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related finance terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.