What selling price covers both the purchase cost and trading commission?
Break-even is the exit price that leaves net profit at zero after costs. Because the calculator includes commission on both entry and exit, the answer must recover more than the original purchase value.
Solving for an unknown selling price
Buy cost per share = Average buy price × (1 + Buy fee ÷ 100)Break-even price = Buy cost per share ÷ (1 − Sell fee ÷ 100)Recovering entry and exit commission
The worked case starts with a known buy price, quantity and per-side commission. It solves for the future sell price at which sale proceeds cover the position cost plus both commissions.
Illustrative inputs; currency amounts below use USD. Rates and prices are assumptions, not live quotes.
- Average buy price
- $10.00
- Shares
- 100
- Buy fee
- 0.2%
- Sell fee
- 0.2%
Step-by-step calculation
- Buy cost per unit including the fee = 10 × (1 + 0.2 ÷ 100) = 10.02.
- Keep 99.8% of the sale price after the sell fee. Divide the buy cost per unit by 0.998 to get 10.04008.
- At that price, net sale proceeds for 100 units equal the original fee-inclusive cost of 1,002.
Intermediate figures are rounded for reading. Results use the full calculation precision.
Reading the required percentage move
The required move is the gap between the buy price and break-even price. Higher two-sided fees widen that gap even though the number of units does not change the per-unit break-even in the same way.
Costs that can move break-even again
Do not add the fee percentage to the buy price only once. Exit commission is charged on the future sale value, so the equation must solve for it rather than treating it as a fixed entry cost.
- The same percentage commission is charged on buying and selling.
- There are no fixed ticket fees, spread, tax or currency charges.
- The entire quantity is sold at one price.
Calculations related to break even price
The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.
References
Sources and conventions
- SEC Investor.gov: investment costs
Background on costs that can reduce investment returns; the example uses only the fees entered.
Quick answers
Frequently asked questions
Does break-even include both commissions?
Yes. The purchase cost includes the buy fee and the required sale proceeds are reduced by the sell fee.
Why does quantity not change the break-even price?
The same per-share fees apply across the position, so quantity changes totals but cancels out of the per-share price.
Are taxes included?
No. Only the two fee percentages entered in the calculator are included.
Calculation method and limitations · Report an error
Educational content only. This guide is not financial advice.