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Trading and options · Trading costs and break-even

Trading Break-Even Calculator

Created by Arunangshu DasReviewed

Calculate the exit price that covers the supplied opening and closing fees for a long or short stock trade.

Check the nearest price on your supplied grid and the net result at the adjacent less favorable level.

Supplied stock trade

Use the same major currency for all amounts. Enter decimals with a period and no grouping separators.

Formatting only. The calculator performs no currency conversion.

Enter zero for each charge that does not apply. The optional increment aligns the exit to a grid with nonnegative modeled profit.

Modeled break-even exit

Enter your trade assumptions or load the worked example.

These prices assume one complete exit. Actual fills and charges can differ.

Learn to calculate a break-even price

Follow worked long and short cash flows and see why percentage fees depend on the exit price.

Read the trading break-even guide

Formula and methodology

Long price = (opening outlay + closing fixed fee) ÷ [shares × (1 − closing rate)].

Long price = (opening outlay + closing fixed fee) ÷ [shares × (1 − closing rate)]. Short price = (net opening proceeds − closing fixed fee) ÷ [shares × (1 + closing rate)]. Use rates as fractions in these formulas. With a supplied increment, round the long exit up or the short buyback down on a grid anchored at zero.

Definitions

Break-even is the hypothetical exit price where signed opening and closing cash flows sum to zero. Opening and closing percentage charges each use their own gross notional. Fixed charges are amounts for each transaction.

Verified worked examples

For 20 shares at 50, with opening rate 1%, closing rate 2% and fixed charges of 2 each, long opening outlay is 1,012 and the mathematical exit is 1,014 ÷ 19.6. On a 0.01 grid, 51.74 yields 0.104 profit. The short mathematical exit is 986 ÷ 20.4, and 48.33 yields 0.068 profit.

Interpretation

The signed closing flow at the mathematical exit offsets the opening flow. At a supported grid price, check the exact net profit and the result at the next less favorable price. If the grid has no supported break-even level, the mathematical price remains available.

Inputs and interpretation

Choose long or short and enter entry price, quantity, and fixed and percentage fees for opening and closing. Supply explicit zero charges where applicable. Optionally enter a positive price increment in the same currency.

Assumptions and limitations

One full exit for the same share quantity, in one major currency. Fees are fixed or proportional to that side’s gross notional. The calculation uses no time period, compounding or annualization.

Supported domain and common mistakes

Entry price and shares are positive and at most 1 trillion. Fixed charges are nonnegative and at most 1 trillion. Rates are from 0% to strictly below 100%. Inputs allow 12 decimal places. The exit must be positive and at most 1 trillion. Mathematical quotients use up to 24 significant digits and are labeled when rounded. Grid decisions use exact fractions.

Apply the closing percentage to the closing notional. For a short, opening is a sale and closing is a purchase. Adding all fees to the entry price gives the wrong direction and can use the wrong closing fee base.

Frequently asked questions

What price do I need to sell at to break even?
For a long, divide opening outlay plus closing fixed fees by shares times one minus the closing fee fraction.
How do I find the break-even buyback price for a short?
Subtract the fixed buyback charge from net opening proceeds, then divide by shares times one plus the closing fee fraction.
Why are there separate opening and closing rates?
Each rate is applied to the value of its own transaction. They can differ and generally have different monetary bases.
What if I pay no fees?
With all four charges set to zero, the mathematical break-even price equals entry.
Why does a short sometimes have no supported solution?
If net opening proceeds cannot cover even the fixed closing fee, no positive buyback price breaks even.
Which way does the grid price round?
A long rounds upward to improve sale proceeds. A short rounds downward to lower buyback cost.

Sources and educational scope

Educational cash-flow model for hypothetical fills. It excludes tax, FX, borrowing, venue rules, order eligibility, tiered charges, spreads and slippage. Actual costs and fills can differ.

Reviewed . AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.

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