Break-even calculator

Getting back to the price you paid isn't quite getting back to even once fees are counted. This calculator spreads your costs across the position and shows the exit price where the trade nets zero.

Break-even price

$20.10

Sell at or above this

Move needed: 0.5%
Fees per share: $0.099
Total fees: $9.90

For education only, not investment advice. Results are estimates based on what you enter, and they leave out anything not shown, such as slippage and most taxes. Check the numbers with your broker or a licensed professional before acting on them.

The formula

Fees per share: (fee to open + fee to close) / shares
Long break-even: entry price + fees per share
Short break-even: entry price - fees per share

Worked example

You buy 100 shares at $20 through a broker charging $4.95 a trade.

Total fees: $4.95 + $4.95 = $9.90
Fees per share: $9.90 / 100 = $0.099
Break-even: $20.00 + $0.099 = $20.10

You need to sell at $20.10 or better, a 0.5% move, just to get your money back. Costs matter most on small positions: the same fees on 10 shares would need a move of about 5%.

Costs that fees alone miss

Many US brokers now charge no commission on stocks, but trading still has costs. The bid-ask spread is the largest for most retail traders: buying at the ask and selling at the bid means starting behind by the width of the spread. On a stock quoted $5.00 by $5.05 that is a full 1%.

Enter estimated spread costs and any small regulatory fees in the fee boxes for a more honest number. Short sellers should also add borrow fees for the expected holding period, which can be large on hard-to-borrow stocks. Margin interest belongs there too if you are using a loan.

Options have a different break-even

An option's break-even at expiration depends on the premium as well as the strike. For a long call it is the strike plus the premium paid, and for a long put it is the strike minus the premium. The options profit calculator works this out for each position.

Frequently asked questions

How do I calculate break-even on a stock?

Add the fees for both sides of the trade, divide by the number of shares, and add the result to your purchase price. On a short position, subtract it from your entry price instead.

How do I work out break-even after buying more shares?

Use your average cost as the entry price and your total share count. The average cost calculator gives you the average across all your purchases, then add every fee paid.

Does break-even include taxes?

No. A sale at exactly break-even produces no gain, so there is normally nothing to tax on that trade. Taxes only start to matter on the profit above it.