Breakeven

"Isn't breakeven when your cash turns positive?"

There are a few ways to calculate breakeven. EZ Numbers uses the one we find most helpful: accumulated Net Income. Breakeven isn't really a cash term; it's about profitability. So Breakeven is the month when all your Net Income since the start, added up, turns positive.

That usually comes well after your first profitable month. A company can earn a profit every month for a year or more and still not have reached Breakeven, because it first has to earn back the losses it piled up early on.

You'll see this on your plan page's Breakeven chart: red bars below zero while the losses add up, the low point where monthly profit starts filling the hole, and green bars once the total crosses zero. The month it crosses is your Breakeven month.

Breakeven doesn't tell you whether you have cash. It tells you whether the business, over its whole life so far, has made money. Cash is what Burn Rate and Runway are for.