Break-Even Price Calculator: When Will You Stop Losing?
In stock trading, knowing your break-even price is critical. It’s the minimum price at which your trade becomes profitable after covering all costs. Whether you’re a beginner or an experienced trader, a break-even stock calculator can help you make smarter decisions by showing exactly when your trade stops being a loss.
What Is a Break-Even Price?
A break-even price is the stock price at which your total profit equals your total cost. At this point, you’ve neither gained nor lost money on the trade.
It includes:
- Buy price of the stock
- Number of shares
- Brokerage charges
- Taxes and other fees
Why Use a Break-Even Calculator?
Many traders exit trades too early or too late because they don’t know their true break-even point. A calculator helps you:
- Avoid selling at a loss unknowingly
- Adjust targets based on real trading costs
- Know when to average down to reduce break-even
- Plan exit points based on realistic profit goals
How to Use a Break-Even Price Calculator
Step 1: Enter Buy Price
Input the price you paid per share. For example, ₹500.
Step 2: Enter Number of Shares
Input how many shares you bought—say, 100.
Step 3: Enter Brokerage & Fees
Include total charges from your broker (brokerage, GST, STT, etc.). Let’s say it’s ₹120.
Step 4: Calculate
The calculator will provide your break-even stock price using the formula:
Break-Even Price = (Total Buy Cost + Total Fees) / Number of Shares
Example: Break-Even Calculation
- Buy Price: ₹500
- Shares: 100
- Fees: ₹120
Total Cost = ₹500 × 100 + ₹120 = ₹50,120
Break-Even = ₹50,120 / 100 = ₹501.20
So, you need to sell at ₹501.20 just to break even.
What Happens If You Average Down?
Let’s say you buy 100 more shares at ₹480. Your average cost changes, and your break-even drops.
Use the calculator again with:
- New total quantity: 200 shares
- Combined cost of both trades
- Updated brokerage fees
A good calculator will auto-calculate your new break-even price, helping you decide if averaging down is wise.
When Should You Use a Break-Even Calculator?
- Before placing a trade (to know your risk)
- After buying (to set exit price)
- After averaging down
- To calculate exact losses if exiting early
Key Benefits of Knowing Your Break-Even Price
✅ Reduces emotional trading
✅ Prevents panic selling
✅ Encourages profit discipline
✅ Helps manage expectations
Final Thoughts
The break-even price is more than just math—it’s a powerful insight into your risk-reward equation. By using a break-even stock calculator, you gain clarity and control over your trades. It helps ensure that every trading decision is backed by numbers—not guesswork.
FAQs
Q1: Does the break-even price include brokerage and taxes?
Yes, a good calculator factors in all trading charges to give you the true break-even point.
Q2: What if I buy the same stock at multiple prices?
Use the average buy price and total cost to calculate your updated break-even.
Q3: Can this calculator help with intraday trades?
Absolutely. It’s useful for all types of trades, especially where costs impact profits heavily.
Q4: Is break-even the same as the sell target?
No. Break-even is where you make zero profit. A sell target should be set above that for actual gains.
Q5: How do I lower my break-even price?
You can lower it by buying more at a lower price (averaging down), but only if it fits your risk profile.