Estimate how far price must move to cover spread, commission, swap, and other entered costs for a forex position.
STEP-BY-STEP
How to use this tool
- Select long or short and enter the actual or planned entry price.
- Enter standard lots, pip size, and account-currency pip value.
- Enter a realistic spread for the trading session.
- Add complete round-turn commission plus expected swap and other costs.
- Review the required pips and estimated break-even price.
- Use actual fills and statement costs for journal review because live break-even can move.
WORKED EXAMPLE
See the calculation in context
One standard lot with a 1.2-pip spread, $10 pip value, and $7 round-turn commission has $19 total entered cost. It needs about 1.9 pips of favorable movement to reach estimated break-even.
Calculation method
Total costs = spread pips × lots × pip value per lot + commission + swap and other costs. Cost-recovery pips = total costs ÷ position pip value. Add the price movement for a long trade and subtract it for a short trade.
AVOID THESE ERRORS
Common mistakes
- Using per-side commission instead of full round-turn commission
- Adding spread twice
- Using the wrong pip size for JPY pairs or non-forex products
- Ignoring swaps on multi-day trades
- Assuming a broker platform marks break-even the same way
- Treating the break-even price as a profit target
FREQUENTLY ASKED
Questions and answers
Why is break-even beyond the entry price?
The trade must first recover spread and every other entered cost before net P&L reaches zero.
Does the result include slippage?
Only if you add an estimated slippage amount under other costs.
Can the break-even price change after entry?
Yes. Swap accrual, partial closes, fees, conversion, and execution changes can move it.