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. Breakeven Price

    1. The amount of money for which an asset must be sold to cover ...
  2. Break-Even Analysis

    An analysis to determine the point at which revenue received ...
  3. Profit Range

    A range of prices that an underlying security can possess in ...
  4. Cost-Volume Profit Analysis

    A method of cost accounting used in managerial economics. Cost-volume ...
  5. Money Market Yield

    The interest rate earned by investing in securities with high ...
  6. Yield Spread

    The difference between yields on differing debt instruments, ...
Related Articles
  1. 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 ...
  2. Managing Wealth

    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.
  3. Personal Finance

    Tips For Series 7 Options Questions

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

    Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. ...
  5. Investing

    Calculating Capital Gains Yield

    Capital gains yield refers to a security’s appreciation or depreciation during the time it’s held.
  6. Investing

    4 Types Of Money Market Yields

    We give you four equations to help figure out the yields on your investments.
  7. Personal Finance

    All-Time Low Mortgage Rates: Time To Refinance?

    Interest rates keep dipping lower and lower. Find out what it takes to tip the scales toward a refinance.
  8. Investing

    Calculating Yield to Worst

    Yield to worst is the lowest possible yield on a bond that may be called in the future.
  9. Investing

    Understanding the Different Types of Bond Yields

    Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment.
  10. Investing

    Yield vs. Total Return: How They Differ

    Understanding yield vs. total return is essential in constructing portfolios that meet income generating needs while providing growth for the future.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. What is the difference between the yield of stock and the yield of a bond?

    Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond ... Read Answer >>
  4. Can I use the current yield to compare a bond to an equity investment?

    Learn about the different types of yield measurements for stocks and bonds, and find out how to make careful comparisons ... Read Answer >>
  5. What size of annual dividend yield is typical of companies in the financial services ...

    Learn the importance of calculating the annual dividend yield and how income investors can use it to analyze companies in ... Read Answer >>
  6. Why are bond yields calculated in terms of basis points?

    Find out why financial analysts and publications track and quote bond yields in basis points, or bps, rather than simply ... Read Answer >>
Trading Center