Break-Even Price Calculator
Calculate the exit price needed to break even after accounting for trading fees and funding costs.
Formula
Where f_entry and f_exit are fee rates on open/close, and r_funding is the cumulative funding rate you expect to pay.
Examples
- Entry Price = $50,000
- Entry fee (taker) = 0.05%
- Exit fee (taker) = 0.05%
- No funding cost
- BE = $50,000 × (1 + 0.0005 + 0.0005) = $50,000 × 1.001
- BE = $50,050
- Entry Price = $3,200
- Entry fee (maker) = 0.02%, Exit fee (taker) = 0.05%
- Expected funding cost = 0.02%
- BE = $3,200 × (1 + 0.0002 + 0.0005 + 0.0002)
- BE = $3,200 × 1.0009 = $3,202.88
- Entry Price = $150
- Entry fee = 0.05%, Exit fee = 0.05%
- Funding (negative, shorts pay) = 0.01%
- BE = $150 × (1 − 0.0005 − 0.0005 − 0.0001)
- BE = $150 × 0.9989 = $149.84
Key Concepts
Why Break-Even Matters
Every trade starts at a loss due to fees. Knowing exactly how far price must move before you're profitable helps you set realistic targets and avoid trades where the break-even hurdle is too high.
Fee Impact at High Leverage
Fees are charged on position size, not margin. A 0.1% round-trip fee on a 50x position costs 5% of your margin just to open and close. The break-even price move is still 0.1%, but the margin impact is 50x that.
Funding as a Hidden Cost
For positions held across funding intervals, the cumulative funding rate adds to your break-even. Three 8-hour intervals at 0.01% each adds 0.03% to the hurdle — equivalent to another round of taker fees.
Maker vs Taker Break-Even
Using maker orders (limit) both ways gives a break-even of roughly 0.04%. Using taker orders (market) both ways makes it roughly 0.1%. The difference is significant for frequent traders.
Break-Even and Scalping
Scalpers targeting small moves (0.1-0.3%) are heavily impacted by break-even. A 0.1% fee hurdle on a 0.2% target means fees consume half the profit. This is why scalpers prioritize maker fees.
Negative Funding Advantage
If you're on the receiving side of funding, it actually lowers your break-even — the market is paying you to hold the position. This creates opportunities in funding rate arbitrage strategies.
How to Calculate Break-Even Price
The break-even price is your entry price adjusted for all costs associated with the trade. For a long position, the break-even is always above your entry (the market must move up to cover costs). For a short, it's below.
The two main cost components are trading fees (charged on open and close) and funding payments (if holding across funding intervals). Some traders also factor in slippage, though that's harder to predict.
Calculating break-even before every trade is a simple habit that prevents you from taking trades with razor-thin margins. If your expected move is only slightly above break-even, the trade may not be worth the risk.
Frequently Asked Questions
Does leverage affect break-even?
No — break-even is a price level, and it's the same regardless of leverage. Leverage affects how much margin is required and your ROE, but the price at which you stop losing money is purely a function of fees and funding.
Should I include expected funding costs?
Yes, if you plan to hold across funding intervals. Check the current funding rate and multiply by the number of intervals you expect to hold. Even one interval at 0.01% adds to your break-even.
What about slippage?
Slippage (getting a worse fill than expected) effectively increases your entry cost. If you expect 0.02% slippage on each side, add 0.04% to your total cost estimate. Market orders on thin books will have more slippage.