Break-even calculator

The three costs that add up

The spread is always paid on entry. Commission depends on volume and many brokers charge it per side. Swap only appears if you hold the position overnight. All three are converted into pips so they can be compared against your target.

Break-even pips = (Spread × pip value × lots + Commission × lots + Swap × nights × lots) ÷ (pip value × lots)

A worked example

One lot with a 1 pip spread and €7 commission per lot, with the pip at €10: the spread costs €10 and the commission €7, so break-even sits at 1.7 pips. On a 10 pip target costs take 17%; on a 100 pip one, 1.7%.

Frequently asked questions

Why does break-even in pips not change with more lots?

Because cost and pip value scale together. Doubling size doubles what you pay, but also what each pip earns, so the distance needed is the same. What does change is the cost in money.

When does it become a concern?

There is no universal threshold, but the larger the share of the target taken by costs, the less room for error you keep. It is the relationship that makes very short-move strategies so sensitive to broker conditions.

Why is my swap negative sometimes and positive others?

Swap comes from the interest rate differential between the pair's two currencies and the direction of your position, so it can be paid or received. This calculator only adds the one that subtracts; it ignores a positive swap, so as not to count in your favour something that can change.

Other calculators

• Position size (lots)
• Risk/reward (R:R)
• Pip value
• Margin / leverage
• Market sessions
• Drawdown and recovery