Nov 9, 2025

Breakheven Cashflow

• Breakeven cashflow is the amount of cash a business needs to bring in to cover all its cash expenses with no profit and no loss.

How do I remember it?

• Think of breakeven cashflow as "the moment your business stops burning cash and starts making it.”

Real world example

• You run a Food Truck

You spend $3,000 per month on gas, food supplies, and rent for your spot.

Each meal you sell brings in $10, and your cash cost per meal (ingredients, packaging) is $5.

So you make $5 cash profit per meal.

• To cover your $3,000 monthly expenses:

$3,000÷$5=600 meals

• Breakeven cashflow = selling 600 meals per month.

After meal #601, you’re bringing in real cash profit!