Break Even Calculator
Calculate the minimum sell price to break even on your stock trade, including commissions.
For educational purposes only. This calculator does not provide financial advice. Actual trading costs may vary by broker.
📊 Visual Analysis
What This Calculator Does
The Break-Even Calculator computes the minimum sell price at which you recover your total investment in a stock trade, including both buy and sell commissions. Enter the buy price, number of shares, and commissions on each side to find the exact price where your net proceeds equal your total cost — the point where you neither gain nor lose money.
Formula
Where:
- Buy Price = The price per share you paid when purchasing the stock
- Shares = The total number of shares purchased
- Buy Commission = The fee charged by your broker for the buy order
- Sell Commission = The fee charged by your broker for the sell order
The formula adds both commissions to the total purchase cost and divides by the number of shares to find the per-share price at which you break even. The sell price must exceed this value for you to realize a net profit.
Input Fields Explained
Buy Price per Share ($)
The price per share at which you purchased the stock. This is the base cost before any commissions or fees. Use the actual execution price, not the limit order price, for the most accurate break-even calculation.
Number of Shares
The total number of shares you bought. The break-even price is calculated on a per-share basis, but the total cost and commissions affect the result. More shares mean the fixed commission is spread over more units, reducing the per-share impact.
Buy Commission ($)
The commission or fee charged by your broker for executing the buy order. Enter the total fee in dollars. If your broker offers commission-free trading, enter 0. Some brokers charge per-share fees instead of flat fees — convert those to a total dollar amount.
Sell Commission ($)
The commission or fee you expect to pay when selling the shares. This is typically the same as the buy commission for most brokers, but may differ for certain account types or order sizes. Enter 0 if there is no sell-side commission.
Example Calculation
You buy 100 shares at $50.00 each, with a $9.99 buy commission and a $9.99 sell commission.
Total cost = (50 × 100) + 9.99 + 9.99 = $5,019.98
Break-Even = 5,019.98 ÷ 100 = $50.20
Interpretation: You need the stock to rise to at least $50.20 per share to break even after commissions. That means the stock must gain $0.20 (0.40%) just to cover trading costs. For smaller trades, commissions represent a larger percentage hurdle.
How to Read the Result
The minimum sell price per share at which you recover your full investment including all commissions. Selling above this price results in a net profit; selling below results in a net loss. The break-even price is always higher than the buy price when commissions are positive.
Common Mistakes
- Forgetting to include the sell commission. Many traders calculate break-even using only the buy commission, which understates the true break-even price. You pay commissions on both sides of the trade, and both must be recovered.
- Ignoring taxes on gains. Capital gains taxes reduce your net profit. If you sell above break-even, you still owe taxes on the gain. This calculator shows the gross break-even point before tax considerations.
- Not accounting for slippage. The actual execution price may differ from your intended price due to bid-ask spreads and market movement. This gap (slippage) adds hidden costs that are not captured in the commission-based break-even calculation.
- Underestimating commission impact on small trades. A $10 commission on a $500 trade is 2% of the principal. The same $10 commission on a $10,000 trade is only 0.1%. Small trades face a proportionally larger hurdle to break even.
- Assuming this covers all trading costs. Regulatory fees, platform fees, foreign exchange costs, and margin interest are additional costs not included in this calculation. Check your broker's complete fee schedule for the full picture.
When This Calculator Is Useful
- Setting minimum sell price targets for profitable stock trades
- Understanding the cost impact of commissions on different trade sizes
- Comparing broker fee structures by seeing how commissions affect break-even
- Evaluating whether a potential price move is large enough to justify the trade
Limitations
- Does not account for taxes on capital gains or dividends
- Does not include bid-ask spreads, slippage, or market impact costs
- Does not cover margin interest or borrowing costs for leveraged trades
- Not designed for short-selling, options, or futures break-even analysis
- Assumes a single sell transaction of all shares at the same price
- This calculator is for educational purposes only and does not constitute financial advice
Frequently Asked Questions
What is the break-even price for a stock trade?
The break-even price is the minimum price at which you need to sell your shares to recover your total investment, including the original purchase cost and all trading commissions. If you sell below this price, you incur a net loss. If you sell above it, you make a net profit. The break-even price accounts for the buy price, number of shares, and commissions on both sides of the trade.
Does this calculator account for commissions?
Yes. The calculator includes both buy-side and sell-side commissions in the break-even calculation. Enter the commission you pay your broker for the buy trade and the commission for the sell trade. If your broker charges zero commission, enter 0 for both fields. Some brokers also charge regulatory fees, platform fees, or per-share charges that are not included here.
What costs should I consider beyond commissions?
Beyond broker commissions, real-world trading costs include the bid-ask spread (the difference between buy and sell prices), taxes on capital gains, regulatory fees (such as SEC or FINRA fees in the US), and margin interest if you are trading on leverage. These additional costs can add up, especially for frequent traders. This calculator covers commissions only.
Why is break-even important?
Knowing your break-even price helps you set realistic profit targets and stop-loss levels. It shows the minimum price improvement needed to cover trading costs, which is especially important for small trades where commissions represent a larger percentage of the total value. Understanding break-even also helps you evaluate whether a trade is worth making given the assumed price movement.
Can I use this for short selling?
This calculator is designed for buy-then-sell scenarios. Short selling involves selling first and buying back later, which reverses the cost structure and introduces additional costs like stock borrowing fees. For short-selling break-even analysis, you would need to account for the borrow cost and the buyback commissions separately.
What are the limitations?
This calculator assumes fixed dollar commissions and does not account for percentage-based fees, taxes, bid-ask spreads, slippage, or margin interest. It also assumes you sell all shares at once — partial sales would have different break-even dynamics. The result is a theoretical break-even point; actual costs may differ based on your broker's fee structure and trade execution.
🔧 Related Calculators
Educational Disclaimer
This calculator is for educational and informational purposes only. It does not provide investment, financial, tax, or legal advice. The results are based on the inputs and assumptions you provide and may not reflect real market conditions, fees, taxes, or risks. Always do your own research or consult a qualified professional before making financial decisions.