Why break-even is above your buy price
You pay a fee when you buy and another when you sell. The buy fee reduces the coins you receive; the sell fee is deducted from the proceeds.
So returning to your buy price is not enough — the price must go a little higher to cover both charges. That price is the break-even price.
Formulas
amount × (1 − fee rate) ÷ buy pricebuy price ÷ (1 − fee rate)²(break-even price − buy price) ÷ buy price × 100%Worked example (recompute it yourself)
Buy price 78,400 USDT, 0.1% fee:
Break-even = 78,400 ÷ 0.999² = 78,400 ÷ 0.998001 ≈ 78,557.04 USDT.
Required gain = 78,557.04 ÷ 78,400 − 1 ≈ 0.20%.
The higher the fee rate, the larger that extra move: about 0.10% at 0.05% and about 1.00% at 0.5%.
Notes
This covers trading fees only — not slippage, withdrawal fees or funding. Those push the real break-even higher.
If you have a target profit, the target price calculator extends break-even into "how high to make a given amount".
FAQ
Why is the fee rate squared in the formula?
Because it is charged twice: the buy side multiplies coins by (1 − fee), the sell side multiplies proceeds by (1 − fee). The two combine to (1 − fee)².
Is the break-even price the same as liquidation price?
No. Break-even is a spot concept with no leverage. Liquidation price applies to leveraged contracts and depends on margin, which is a different calculation.