What is the Break-Even Calculator?
A break-even calculator shows the exact price your trade must reach just to cover its costs — entry commission, exit commission, and any fees — before a single dollar of profit appears. Because every trade starts slightly underwater thanks to fees, knowing your true break-even keeps your targets and stops realistic.
It's especially useful for active traders and scalpers, where commissions are a meaningful slice of each move, and for anyone comparing brokers: lower fees pull your break-even closer to your entry, leaving more of every move as profit.
How to use it
- 01Enter the price at which you entered the trade.
- 02Enter your position size — the number of shares, contracts, or units.
- 03Add the total commission or fees you'll pay to enter and to exit.
- 04The calculator returns the price you must reach to break even, and how far that is from your entry.
The formula
For a short position the fees are subtracted instead: Break-Even = Entry − (Total Fees ÷ Shares).
Worked example
You buy 200 shares at $50.00, paying $5 commission to enter and $5 to exit — $10 in total fees.
Break-Even = $50.00 + ($10 ÷ 200) = $50.00 + $0.05 = $50.05.
The stock must rise five cents just to cover costs; anything above $50.05 is profit, anything below is a loss.
Frequently asked questions
What is a break-even price?+
It's the price at which your trade's profit is exactly zero — the point where the gain on the position precisely offsets all the commissions and fees you paid to open and close it. Above it (for a long) you profit; below it you lose.
How do fees affect break-even?+
Every fee pushes your break-even further from your entry: higher costs mean the price has to move more before you're in profit. This is why low-commission brokers matter most for high-frequency or small-move strategies.
Does break-even differ for short trades?+
Yes. For a short position you profit when price falls, so fees lower your break-even: you subtract the per-share fee from your entry. The price must drop below that level before the trade turns profitable.
Should I set my stop at break-even?+
Many traders move their stop to break-even once a trade moves in their favour, locking in a no-loss outcome. Remember to use the true break-even that includes fees, not just your raw entry price, so a stopped-out trade really is flat.
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For educational purposes only. Not financial advice.