How to Calculate Trade Risk and Break-Even Price
Every trade has three prices: the entry, the target, and — crucially — the break-even. But most traders calculate break-even wrong because they forget commissions. When you buy and sell, the commissions eat into your profit, meaning your true break-even is higher than your entry price. The ToolStand Trade Risk and Break-Even Calculator accounts for all of this.
How the calculator works
Enter your buy price, sell price, quantity, and commission rate. The calculator shows your break-even price — the price at which you neither gain nor lose after commissions — along with your net profit or loss at the target sell price. It includes presets for BIST (Borsa Istanbul) and Binance, so you do not have to look up commission structures manually.
Why commissions change the math
If you buy 100 shares at $50 with a 0.2 percent commission, your cost basis is $5,010, not $5,000. If you sell at $50.10, you might think you made $10 — but after the selling commission, you are at a loss. The break-even calculator prevents the "green on screen, red in account" problem.
Position sizing with the DCA Calculator
Not every trade happens at one price. The DCA Calculator tracks multiple buys at different prices and calculates your true average cost. Combined with the trade risk calculator, you know exactly where you stand.
Inflation and real returns
Nominal profit is not real profit. The Inflation Calculator adjusts your returns for purchasing power. A 10 percent annual return sounds great — but if inflation is 7 percent, your real return is only 3 percent.
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Further reading: SEC Investor.gov — Introduction to Investing · FINRA — For Investors