Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
38% - Moderately

Break-Even Point

Synonyms:equilibrium, no loss or profit, self-sustaining
Acronyms &
Filed Under: financial-banking, mortgages, real-estate
Tags: business, investment

Definition of break-even point (BEP)

break-even point (BEP)
1. When a person's expenses match their income or savings then they are said to have reached the break-even point. In home finance, the term can refer to the amount of time it takes to regain the costs of refinancing a loan or paying discount points.

Related Terms and Acronyms:

  • cash flow forecast   An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
  • gross profit margin   The difference between the sales your business generates and the costs you pay out for goods.
  • income approach   A step in the valuation process of an income property. The value is reached by estimating the annual income minus an allowance for vacancies and bad debts and then subtracting annual operating expenses, real estate taxes, and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.
  • validation period   The amount of time needed before an insurance policy turns a profit for an insurance company.

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