Quick answer: “Break Even” means to cover all costs exactly, making neither a profit nor a loss.
Break even — to reach a point where income or gains exactly equal costs or losses, resulting in neither profit nor loss; to end up in a neutral position after an effort.
Origin & History
The phrase derives from accounting and commerce. The verb "break" here means to reach a turning point or to interrupt a state — in this case, the state of losing money. "Even" means equal or balanced. Together, "break even" describes the moment when outgoings and income become equal. The expression has been common in commercial English since at least the early 20th century and is now a standard term in business studies worldwide.
Beyond finance, the idiom has spread into everyday speech to describe any situation where gains and losses cancel each other out, leaving one no better or worse than before. Idioms like this are the kind of expression documented in general reference works such as the Cambridge Dictionary, which record how figurative meanings develop in everyday English.
Example Sentences
| Sentence | Context |
|---|---|
| The start-up expects to break even by the end of its second year of trading. | Business finance |
| We barely broke even on the school fundraiser after paying for the venue. | Community event |
| The film broke even at the box office but made a profit from streaming rights. | Entertainment industry |
| Investors are pleased that the company has finally broken even after three years of losses. | Investor relations |
| I broke even at poker last night — won some, lost some, came home with the same amount. | Informal / gambling |
| The project broke even once we factored in the government grant. | Project management |
Use It in Conversation
Dialogue Example
Marcus: How did the market stall go at the weekend?
Ella: Not brilliant, to be honest. We sold most of the stock but only just broke even after the pitch fee and transport costs.
Marcus: Well, it's a learning experience. Next time you'll know to price things a bit higher.
How to Use It
As a verb phrase, "break even" is written as two separate words: "we broke even", "hoping to break even". When used before a noun as a modifier, hyphenate it: "the break-even point", "a break-even analysis". It is common in business English but also used in everyday conversation. The past tense is "broke even" and the past participle is "broken even".
Common Mistakes
Mistakes to Avoid
We hope to breakeven by summer.
We hope to break even by summer. — As a verb phrase, always write it as two words.
We reached our break even point last month.
We reached our break-even point last month. — As a compound adjective before a noun, add a hyphen.
Similar Idioms
Practise This Idiom
Want to understand the grammar behind this? Explore our Grammar guides.
Quick Check: Break Even
2 questions — test what you just learned.
1. What does “Break Even” mean?
2. Complete the sentence: “The start-up expects to _____ by the end of its second year of trading.”
Frequently Asked Questions
What does "break even" mean?
"Break even" means to reach a point where your income or gains exactly equal your costs or losses, so you neither make a profit nor suffer a loss. It can also describe any situation ending in a draw or neutral outcome.
Where does "break even" come from?
The phrase comes from accounting and business. 'Break' here means to interrupt or reach a turning point, and 'even' means equal or balanced. The expression has been used in commercial English since at least the early 20th century.
Can you give an example of "break even" in a sentence?
Example: "The restaurant struggled in its first year but managed to break even by December." It means the restaurant's income finally covered its costs.
Is "break even" one word or two?
As a verb phrase it is two words: 'break even'. As a compound adjective or noun before another noun it is hyphenated: 'the break-even point', 'a break-even analysis'.
What CEFR level is "break even"?
This idiom is appropriate for B2 (Upper-Intermediate) learners and above, particularly those studying business English or economics.
What are common mistakes with "break even"?
A common mistake is writing it as one word: 'breakeven' (only acceptable as a noun or adjective, not a verb). Also ensure you say 'break even', not 'break-even' as a verb phrase.
What is a break-even point?
The break-even point is the precise level of sales or output at which total revenue equals total costs, producing zero profit or loss. It is a key concept in business planning.
Can "break even" be used outside of finance?
Yes. It can describe any situation where efforts or outcomes balance out, such as in gambling ('I broke even at the casino'), sports, or even daily life ('After a good and bad day, I'd say I broke even').
What idioms are similar to "break even"?
Related expressions include 'make ends meet' (cover basic expenses), 'in the black' (profitable), and 'in the red' (operating at a loss).
How do I practise idioms like "break even"?
Use LexFizz's Flip Tiles and Flash Cards. Try creating sentences about a business scenario you know — perhaps a school event or a small project — using the idiom.