Break-Even Price Calculator
Break-Even Price Calculator
What is Break-Even Price Calculator?
A Break-Even Price Calculator is a simple yet essential tool that helps investors and traders determine the exact price at which their investment starts to make a profit. At KTrade, we understand that knowing your break-even point is key to managing risk and planning smarter trades.
Our Break-Even Price Calculator shows you the minimum price your stock must reach to recover your total cost, including brokerage fees and commissions. It gives you a clear picture of when your investment will turn profitable, allowing you to make confident and informed trading decisions.
Whether you are a short-term trader or a long-term investor, understanding your break-even level helps you protect your capital and set realistic price targets.
How Does the Break-Even Price Calculator Work?
KTrade’s Break-Even Price Calculator uses a straightforward calculation. You only need to enter:
- The purchase price per share
- The number of shares purchased
- The commission or brokerage rate (if applicable)
Formula:
Break-Even Price = (Total Cost of Investment) / (Number of Shares)
Where:
- Total Cost of Investment = (Purchase Price × Number of Shares) + Total Commission or Fees
Example:
If you buy 1,000 shares at PKR 50 each and pay a total commission of PKR 500, your total investment cost is:
Total Cost = (50 × 1,000) + 500 = PKR 50,500
Your break-even price will be:
Break-Even Price = 50,500 / 1,000 = PKR 50.50 per share
This means you need to sell your shares at PKR 50.50 or higher to start making a profit.
Why Use the Break-Even Price Calculator?
At KTrade, we believe that smart investing begins with understanding your costs. The Break-Even Price Calculator helps you:
- Identify the price level where you start earning a profit
- Factor in commissions and fees to see your true costs
- Set realistic selling prices and manage risk effectively
By using this calculator, you gain clarity about your investment’s profitability and can make more disciplined trading decisions.