The breakeven point method provides an ROI regarding sales. It is determined by how many units are sold or by how much money is made from sales.
I like to use the breakeven point when conducting ROI for a new B2C offering.
Breakeven is similar to payback period. Both approaches add the total cost of investment and then determine what is needed to cover those costs.
The difference is that breakeven does not count the time periods, it counts how many products must be sold to pay for the project. The fewer the products that are needed to offset the investment costs, the better the investment.
This technique focuses on the market and customers. It’s most commonly used with seasonal consumer products or with exclusive products that have a limited market. It determines how big the market must be for the product to make money.