Break-Even Price Calculator
Calculate the break-even price for your trades – including all costs
Trade Parameters
Break-Even Analysis
Enter trade parameters to calculate break-even price
Price Scenarios
| Exit Price | Gross P&L | Net P&L | Return % |
|---|
Break-Even Analysis Guide
What is Break-Even?
- • Price where you neither profit nor lose
- • Includes all trading costs and fees
- • Critical for setting profit targets
- • Helps determine minimum price movement needed
Key Factors:
- • Entry price and position size
- • Commission and trading fees
- • Bid-ask spread costs
- • Position type (long vs short)
Break‑Even Price Formula & How It Works
The break‑even price is the exit price at which your trade neither makes a profit nor a loss after accounting for all costs. For a long position (buy low, sell high), the formula is:
For a short position (sell high, buy back lower), the formula becomes:
Where Total Costs include:
- Commission for entry and exit (round‑trip)
- Other fees (exchange, regulatory, clearing) – also counted twice
- Spread cost (bid‑ask spread × quantity)
The cost per share is simply Total Costs / Quantity. Adding (or subtracting) this to the entry price gives your break‑even.
🧮 Why Include Spread and Fees?
Many traders only consider commission, but the bid‑ask spread is a real cost – you buy at the ask and sell at the bid. Our calculator accounts for that, giving you the true minimum price move required to recover all expenses. The scenario analysis table shows how different exit prices affect your net P&L and return percentage.
📊 Practical Example
Suppose you buy 100 shares at $50.00, commission is $5 per trade, other fees $1, and the spread is $0.05. Total costs = ($5+$1)×2 + ($0.05×100) = $12 + $5 = $17. Cost per share = $0.17. Break‑even price (long) = $50.00 + $0.17 = $50.17. You need the price to rise $0.17 just to break even.
❓ Frequently Asked Questions
Q: Why is spread considered a cost?
The spread is the difference between bid and ask. When you enter a long trade, you pay the ask price; when you exit, you receive the bid price. That difference is an immediate loss if prices don’t move.
Q: Do I always need to double commission and fees?
Yes, because you pay them when you open the position and again when you close it (unless your broker offers free exits). Our calculator assumes a round‑trip cost.
Q: What if I trade options or futures?
The same logic applies – just enter the contract size as “quantity” and adjust the spread to points/pips. The break‑even price will be in the same units as your entry.
Q: How accurate is the scenario analysis?
It creates a ±10% price range around your entry, showing net P&L after costs. It’s a helpful visual for understanding risk/reward.
Q: Can I save my calculations?
The tool runs entirely in your browser – no data is stored. You can bookmark the page or take screenshots.
⚠️ Disclaimer
Finance ToolBajar’s Break‑Even Price Calculator is for educational and planning purposes only. It does not constitute financial advice. Actual trading costs may vary based on your broker, liquidity, and market conditions. Always verify with your broker’s fee schedule before making trading decisions. We are not liable for any losses incurred from using this tool.
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