The break-even point is the stage where total income equals total costs, meaning the project has recovered its full investment without generating profit or loss.

• No gain, no loss position
  
• Marks the start of profitability
  
• Important for financial planning and risk control

Components

Break-even is based on fixed costs, variable costs, and revenue. It helps determine how much income is needed to cover all expenses.

• Fixed costs: land, setup, and infrastructure
  
• Variable costs: utilities, labor, maintenance
  
• Revenue: yearly or monthly income from operations

Estimated Timeline

For a project with an investment of three crore and yearly cash flow of seventy lakh:

• Estimated break-even point is around four years and three months
  
• After this point, the project starts generating profit