Break-Even Analysis Tool
Most traders don't know their true break-even point. They think if price moves 1%, they profit. But fees, slippage, and funding costs mean you need more than 1% just to break even. This calculator shows the real break-even price including all costs.
Calculates break-even points including trading fees, slippage, and funding costs. Shows break-even price, required price move, and break-even timeline. Essential for evaluating trade profitability.
Price at which you enter the position
Total notional position value
Leverage used on the position
Whether you're long or short
Type of orders you use
Fee for limit orders (typically 0.02-0.04%)
Fee for market orders (typically 0.04-0.075%)
Expected slippage per trade (entry + exit)
Whether to include funding costs
Per-payment funding rate
Hours between funding payments
How long you plan to hold the position
Break-Even Analysis
Break-Even Price
$50245.00
Cost Breakdown
Break-Even Breakdown
Break-Even Timeline
Shows how break-even price changes over time as funding costs accumulate. For longs, break-even increases over time (need higher price to cover funding).
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Calculation Methodology
Break-even analysis calculates the minimum price movement needed to cover all trading costs. It accounts for trading fees, slippage, and funding costs to show the true break-even point.
Key Insight: Break-even is always further from entry than you think. A 1% move sounds profitable, but if you pay 0.1% in fees, 0.2% in slippage, and 0.3% in funding, you need 0.6% just to break even. Always calculate break-even before trading — it helps set realistic profit targets and avoid unprofitable trades.
Learn more about trading costs:
Risk management guideExample Scenario
Setup: $50,000 entry, $10,000 position, 5x leverage, taker fees (0.04%), 0.1% slippage, 7 days, 0.01% funding
What this means: You need price to move to $50,245 (0.49% move) just to break even. If you expect 1% profit ($50,500), that's realistic. If you expect 0.5% profit ($50,250), you're barely profitable after costs. Always factor break-even into your profit targets.
Note: This assumes all costs are known. In reality, slippage varies, funding rates change, and fees might differ. Use conservative estimates to ensure your break-even is realistic.
Common Mistakes & Warnings
- ⚠Ignoring slippage: Most traders assume zero slippage, but market orders can have 0.1-0.5% slippage. Limit orders reduce slippage but may not fill. Always assume some slippage — it's real and affects break-even.
- ⚠Using wrong fee type: If you use market orders, you pay taker fees (higher). If you use limit orders, you might pay maker fees (lower). Be honest about which you actually use — don't assume maker fees if you're using market orders.
- ⚠Forgetting funding costs: Perpetual futures have funding costs every 8 hours. If you hold for days or weeks, funding can be significant. A 0.01% funding rate = 0.03% per day = 0.21% per week. That's real money.
- ⚠Not calculating break-even before trading: Always calculate break-even before entering a trade. If break-even requires 5% move but you only expect 3% profit, the trade isn't worth it. Break-even helps avoid unprofitable trades.
- ⚠Setting profit targets too close to break-even: If break-even is $50,245 and you set profit target at $50,300, you're risking a lot for little profit. Set profit targets well above break-even — aim for 2-3x break-even requirement minimum.
- ⚠Not accounting for funding changes: Funding rates change every 8 hours. If you hold for a week, rates can change significantly. Use average or conservative funding rates, not just current rates, for long-term projections.
Example Scenarios
Try these realistic scenarios to understand break-even points in different trading situations.
Scenario 1: Short-Term Trade (1 Day)
Quick trade with minimal funding costs. Break-even is mostly fees and slippage.
What this means: For a 1-day trade, break-even is only 0.3% because funding costs are minimal. You need price to move to $50,150 just to cover fees and slippage. This is reasonable for short-term trades.
Scenario 2: Long-Term Hold (30 Days)
Extended hold with significant funding costs. Break-even increases substantially over time.
What this means: Over 30 days, funding costs accumulate significantly. Break-even is now 1.2% — you need price to move to $50,600 just to break even. Long-term holds on perps require larger price moves to be profitable.
Scenario 3: High Leverage (20x)
High leverage amplifies both profits and costs. Break-even is lower relative to margin but higher risk.
What this means: With 20x leverage, you only need $500 margin but break-even is 0.5%. While break-even is manageable, high leverage increases liquidation risk. Use with caution.
Frequently Asked Questions
When should I use this tool?
Use this tool before every trade to understand the true break-even point. It shows the minimum price movement needed to cover all costs (fees, slippage, funding). Essential for evaluating if a trade is worth taking and setting realistic profit targets.
What is break-even price?
Break-even price is where your position needs to move to cover all trading costs (fees, slippage, funding). If price moves to break-even, you neither profit nor lose — you just cover costs. You need to move beyond break-even to actually profit.
Why is break-even different from entry price?
Break-even accounts for all costs. If you enter at $50,000 but pay $100 in fees and slippage, you need price to move enough to cover that $100. For a $10,000 position, that's 1% move just to break even. Break-even is always further from entry than you think.
How do fees affect break-even?
Trading fees (maker/taker) are paid on entry and exit. If you pay 0.04% taker fee, that's 0.08% total (entry + exit). For a $10,000 position, that's $8 in fees. You need price to move enough to cover that $8 before you profit.
How does slippage affect break-even?
Slippage is the difference between expected and actual execution price. Market orders can have 0.1-0.5% slippage. If you have 0.2% slippage on entry and exit, that's 0.4% total. For a $10,000 position, that's $40. Slippage can significantly increase break-even requirements.
How does funding affect break-even?
Funding is paid periodically (every 8 hours typically). If you hold for 7 days, you pay funding 21 times. At 0.01% per payment, that's 0.21% total. For longs paying funding, this increases break-even. For shorts receiving funding, this decreases break-even (can profit from funding).
What if break-even requires a huge price move?
If break-even requires 5%+ price move, the trade might not be worth it. Consider: (1) Using limit orders (maker fees, less slippage), (2) Reducing leverage (less funding), (3) Reducing holding time (less funding), (4) Finding better entry/exit prices. High break-even = high risk.
Should I include funding if I'm not trading perps?
No — funding only applies to perpetual futures. If you're trading spot, futures with expiration, or other instruments, set 'Include Funding' to No. The tool will calculate break-even based only on fees and slippage.
What's the difference between maker and taker fees?
Maker fees (limit orders) are typically 0.02-0.04%. Taker fees (market orders) are typically 0.04-0.075%. Maker fees are lower, but limit orders may not fill. Taker fees are higher, but market orders fill immediately. Use the fee type you actually pay.
How do I reduce break-even requirements?
Reduce fees (use limit orders for maker fees), reduce slippage (use limit orders, trade during high liquidity), reduce funding (lower leverage, shorter holding time), or trade larger positions (spreads costs over more capital). Every cost reduction helps lower break-even.
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