Break-Even Calculator — Trading & Investing
Every trade starts at a loss equal to the spread plus commission — this tool shows the exact price your position must reach before you see a single dollar of real profit. Enter spread, commission, and lot size to get break-even price in both pips and dollars. Essential for scalpers where a single pip off on the target means a net loss.
Updated · Reviewed by Foysal Mostafa
Break-Even Analysis
Break-Even Price
1.08527
Pips to Break Even
2.7
Total Cost
$27.00
Spread Cost
$20.00
Why Use the Break-Even Calculator?
Every trade starts at an immediate loss equal to the spread plus commission. Knowing your exact break-even price before you enter prevents you from setting take-profit targets that look profitable on the chart but actually net you nothing after costs. A 10-pip target with a 5-pip break-even only gives you 5 pips of real profit.
Formula Used
Break-Even Price = Entry Price + (Total Costs ÷ Position Size)Worked Example
You buy EUR/USD at 1.10500. Spread = 1.5 pips, commission = $3.50 on a 0.1-lot trade (pip value $1). Spread cost = 1.5 pips × $1 = $1.50. Commission equivalent = $3.50 ÷ $1 = 3.5 pips. Total break-even = 1.5 + 3.5 = 5 pips above entry = 1.10550. Any take-profit target below 1.10550 results in a net loss after costs.
How to Use the Break-Even Calculator — Step by Step
- 1
Enter your entry price
Input the price at which you entered or plan to enter the trade.
- 2
Enter the spread in pips
Type your broker's spread for this instrument in pips. You can find this in your broker's trading platform next to the bid/ask price.
- 3
Enter commission per lot
If your broker charges a per-lot commission (common with ECN/STP brokers), enter that amount in USD. Leave as 0 for spread-only brokers.
- 4
Set your lot size
Enter the size of your position in lots.
- 5
Read your break-even price
The calculator shows the exact price you need to reach to cover all costs, the number of pips needed to break even, and the total cost in dollars.
What Your Break-Even Calculator Results Mean
Break-Even Price
The exact price your trade must reach before you make any profit. Any exit before this price results in a net loss after all costs.
Pips to Break Even
The number of pips the market must move in your favour just to cover spread and commission. Use this when setting minimum take-profit distances.
Total Cost in USD
The combined dollar cost of spread and commission per trade. Multiply by your monthly trade count to see the true impact of trading costs on profitability.
Break-Even Calculator — Frequently Asked Questions
Q.What is the break-even point in trading?
The break-even point is the price at which your trade covers all its costs (spread, commission, fees) and you neither profit nor lose. Any price movement beyond this point in your favour is profit.
Q.How does spread affect break-even price?
In forex, you immediately start at a loss equal to the spread when you open a trade. If you buy EUR/USD with a 2-pip spread, the market must move 2 pips in your favour before you break even.
Q.How do stock broker commissions affect break-even?
If you pay $10 commission each way on a $5,000 stock trade (100 shares at $50), your total cost is $20. Your break-even price = $50 + ($20 ÷ 100) = $50.20 per share.
Q.Why is knowing break-even important?
Knowing your break-even helps you set realistic take-profit targets. If your break-even is 3 pips away from entry, a 3-pip take profit means zero profit. You need at least 2× your break-even distance as your target to achieve a meaningful reward.
Q.How many pips do I need to cover the spread and break even?
Your break-even equals the spread plus any commission. On a 1-pip spread with no commission: you need 1 pip gain to break even. With a 1.5-pip spread and $3.50 commission on a mini lot ($10 pip value × 0.1 lot = $1/pip): break-even = 1.5 pips spread + 3.5 pips commission equivalent = 5 pips. Always factor commission into your take-profit targets.
About the Author
Forex Trader & Software Developer · Founder, TradeCalc
Active forex trader since 2019, specializing in risk management and systematic position sizing. Built TradeCalc to replace manual spreadsheets used in live trading. Every calculator is cross-verified against broker platforms before publishing.
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