# What Is a Break-Even Price? Fees on a Round Trip

> A break-even sell price returns the cost of the shares plus the buy fee and the sell fee. Here is 100 shares at $50 with two $5 fees.

Source: MarketCapLens — https://www.marketcaplens.com/learn/what-is-a-break-even-price
Updated: 2026-09-22

A break-even sell price is the price that returns every dollar the trade spent: the shares, the buy fee, and the sell fee. At that price the gain is zero.

**Key takeaways**

- Break-even sell price = (buy price × shares + buy fee + sell fee) ÷ shares.
- 100 shares at $50, with a $5 buy fee and a $5 sell fee, break even at **$50.10**.
- Tax does not change that price. Tax applies to a gain, and the gain here is zero.
- Anything above that price is a gain before tax.

## The formula

> **Break-even sell price = (buy price × shares + buy fee + sell fee) ÷ shares**

Fees may be zero. If both fees are zero, the break-even price equals the buy price.

## A worked example

Buy **100** shares at **$50**. Pay a **$5** fee to buy and a **$5** fee to sell.

- Cost = 100 × $50 + $5 + $5 = **$5,010**.
- Break-even = $5,010 ÷ 100 = **$50.10**.

A sale at $50.10 returns the $5,010. The [break-even calculator](https://www.marketcaplens.com/tools/break-even-calculator) uses this identity. Dollar profit on a round trip that also includes dividends is on the [stock profit calculator](https://www.marketcaplens.com/tools/stock-profit-calculator).

## What the break-even price tells you

It is the sale price that covers the round trip before tax. The distance from your buy price to that line is the fee drag, spread across the shares.

## What the break-even price leaves out

A target profit after tax needs a higher sale price, because tax takes a share of the gain. This page stops at zero gain. It also assumes the fees you typed are the whole cost. Borrow fees, ADR fees, and a fill at a different price are separate.

The share count that fits a loss limit is [position size](https://www.marketcaplens.com/learn/how-position-size-works). A live price on [Apple](https://www.marketcaplens.com/company/AAPL) is not your break-even. You type the buy price and the fees.

---

*For general education only. Nothing here is investment advice.*

## Frequently asked questions

### How do you calculate a break-even sell price?

Add the buy fee and the sell fee to the cost of the shares, then divide by the share count. 100 shares at $50 with a $5 buy fee and a $5 sell fee break even at $50.10. The MarketCapLens break-even calculator uses this formula.

### Why does tax stay out of the break-even price?

Tax applies to a gain. At the break-even price the gain is zero, so the tax is zero.