What is the break-even price incrypto and how do I calculate it?
Your break-even price is the sale price at which you neither make nor lose money, after all fees. Many
beginners assume it equals the price they paid. It never does, because fees on both sides push it higher.
The formula
Break-even price = Buy price x (1 + fee) / (1 - fee), where fee is the percentage written as a decimal
and applies on both the buy and the sell.
Example
You buy a coin at $100 with a 0.5% fee on each side. Break-even = 100 x 1.005 / 0.995 = about $101.01.
You paid $100.50 per coin including the fee. If you sell at $101.01, the 0.5% sell fee takes about $0.51,
leaving $100.50, so you are exactly even.
If there are fixed costs
Add them to your total cost first. For example, if you also paid $10 in network fees on a $1,000 purchase,
divide total costs by the number of coins to find your true per-coin cost, then apply the sell fee.
If you bought in several batches
Use your average cost: total money spent (including fees) divided by total coins held. Then calculate
break-even from that average, not from any single purchase.
Why it matters
• It tells you the minimum price you need before you can call a trade profitable.
• It helps you set realistic take-profit and stop-loss levels.
• It stops you from fooling yourself that a trade is flat when it is actually losing money.
If you would rather not do the math each time, a free profit calculator can do it for you. I use Trades
Checker (tradeschecker.com), where you enter buy price, sell price, quantity and fees and it shows your
net result.
