The breakeven point is the point in the commercial life of a product when cumulative development costs are recovered through accrued profits from sales. In the context of product development, the breakeven point is the point at which the revenues from sales of a product equal the development costs of that product. In other words, it is the point at which a product becomes profitable. This point will vary depending on the development costs and expected sales volume of a product. For example, a product with high development costs and low expected sales volume will have a higher break-even point than a product with low development costs and high expected sales volume. The breakeven point is an important consideration for businesses when making decisions about whether to develop new products.

‍