Break-Even Exit Price After Fees Calculator
Determine exact target stock exit price needed to break even after accounting for entry/exit broker commissions and regulatory fees.
Accounting for Friction Costs in Stock Execution
Executing trades incurs transaction friction: entry/exit broker commissions, exchange access fees, SEC transaction charges, and order bid-ask spreads. Calculating your true break-even exit price before entering trades ensures profit targets account for execution overhead.
The Break-Even Exit Price Equation
Break-Even Exit Price per Share = (Total Cost Basis + Total Entry Commission + Total Projected Exit Commission) ÷ Total Quantity of Shares. For short positions: Break-Even Exit Price = (Total Short Proceeds − Total Commissions) ÷ Quantity.
How to Use This Break-Even Calculator
Enter share quantity, purchase entry price, entry broker commission ($ or per share), and exit commission ($). The calculator outputs true break-even price per share, minimum percentage move required to break even, and total overhead cost.
Micro-Cap and Low-Priced Stock Execution Traps
Trading low-priced penny stocks with flat per-share broker fees (e.g. $0.005 per share) can create massive fee drag. Buying 10,000 shares at $0.50 ($5,000 value) incurs a $50 entry fee—requiring a 2.0% price rise just to cover commissions!
Frequently Asked Questions
How do I calculate break-even price on a stock trade?
Add total entry and exit commissions to total purchase cost basis, then divide by share volume.
What are SEC transaction fees?
SEC section 31 fees are tiny regulatory fees charged on stock sales (e.g. $27.80 per $1,000,000 of principal).