Breakeven Yield

DEFINITION of 'Breakeven Yield'

The yield required to cover the cost of marketing a banking product or service. Breakeven yield is the point at which the money brought in from the sale of a product or service is equal to the cost of marketing the product or services. The breakeven point is the point at which no profit or loss is being derived.



BREAKING DOWN 'Breakeven Yield'

Breakeven yield allows a decision-maker to have knowledge about the minimum volume yield required to earn a specific rate of return on a product or service.



RELATED TERMS
  1. Break-Even Analysis

    An analysis to determine the point at which revenue received ...
  2. Breakeven Price

    1. The amount of money for which an asset must be sold to cover ...
  3. Breakeven Point - BEP

    1. In general, the point at which gains equal losses. 2. In options, ...
  4. Trading Dollars

    A slang term describing a company that is spending just as much ...
  5. Production Cost

    A cost incurred by a business when manufacturing a good or producing ...
  6. Profit Range

    A range of prices that an underlying security can possess in ...
Related Articles
  1. Economics

    What is the Breakeven Point?

    In general, when gains or revenue earned equals the money spent to earn the gains or revenue, you’ve hit the breakeven point.
  2. Investing

    What's a Break-Even Analysis?

    Most businesses have fixed costs such as rent and salaries, as well as costs for raw materials. Break-even analysis shows how many sales it takes to pay off the costs of doing business, and “break ...
  3. Home & Auto

    Are Hybrid Cars Really More Economical?

    Find out if buying a hybrid vehicle is more economical than a fuel-based vehicle. Fewer trips to the gas station sounds nice, but you need to do the math.
  4. Bonds & Fixed Income

    4 Types Of Money Market Yields

    We give you four equations to help figure out the yields on your investments.
  5. Bonds & Fixed Income

    Bond Yields: Current Yield And YTM

    A bond's current yield, also called "bond yield," is the interest it pays annually divided by the bond's price. A stock's current yield, also called "dividend yield," is the sum of its annual ...
  6. Economics

    Understanding Marginal Cost of Production

    Marginal cost of production is an economics term that refers to the change in production costs resulting from producing one more unit.
  7. Markets

    TIPS: Deflated Expectations, Inflated Opportunity?

    Prices for U.S. Treasury Inflation Protected Securities (TIPS) suggest inflation will be the same over the next 10 years as over the past five. We think that is too pessimistic.
  8. Mutual Funds & ETFs

    What You Need To Know About Bond ETF Yields

    When it comes to fixed income investing, yield is an important component of a bond investment’s total return to accurately assess if it's the right move.
  9. Professionals

    Tips For Series 7 Options Questions

    We'll show you how to ace the largest and most difficult section of this exam.
  10. Investing Basics

    Calculating Capital Gains Yield

    Capital gains yield refers to a security’s appreciation or depreciation during the time it’s held.
RELATED FAQS
  1. What does break-even analysis tell a business about its shutdown point?

    Learn what a break-even analysis tells a company about its shutdown point, and understand why a company's break-even point ... Read Answer >>
  2. How do you find the break-even point using a payback period?

    Understand what a company's breakeven point is and what its payback period is. Learn why a company would want to track both ... Read Answer >>
  3. How is break-even analysis affected by economies of scale?

    Learn what economies of scale are, how they affect total cost and how they affect the break-even point of a company. Read Answer >>
  4. How can I calculate break-even analysis in Excel?

    Learn what break-even analysis is and how to find the break-even point using the Goal Seek tool in Microsoft Excel using ... Read Answer >>
  5. How do I determine the breakeven point for a short put?

    Learn how to determine the breakeven point for a short put. Shorting puts is appropriate for sophisticated traders who understand ... Read Answer >>
  6. What is the difference between yield and rate of return?

    Read about the differences between yield and rate of return. See why many novice investors often struggle more with the concept ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center