Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in promoting inclusive economic development in Indonesia. However, many MSME owners lack sufficient understanding of financial planning tools, particularly Break-Even Point (BEP) analysis, which is essential for determining minimum sales targets, planning profits, and making informed financial decisions. This study aims to examine the impact of BEP understanding and application on the sustainability and profitability of roof tile-producing MSMEs in Pejaten Village, Tabanan. Using a quantitative descriptive approach, data were collected from 10 MSMEs through questionnaires and structured interviews. The analysis employed BEP calculations to assess each enterprise’s financial planning accuracy. The findings reveal that MSMEs that understand and apply BEP analysis achieve significantly higher average monthly profits (IDR 3,125,000) and show greater business stability. In contrast, MSMEs without BEP implementation experience average losses and fail to meet profit targets. The study concludes that BEP analysis is a critical component in improving MSMEs’ financial planning and sustainability. It recommends integrating BEP training into local financial literacy programs and encouraging systematic financial recordkeeping. Future research should expand the sample size and explore additional factors influencing MSME performance in traditional industries.