Why break-even is above your buy price
You pay a fee when you buy and another when you sell. The buy fee already reduces the coins you receive, and 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
investment × (1 − fee rate) ÷ buy priceinvestment ÷ [coins received × (1 − fee rate)]buy price ÷ (1 − fee rate)²(break-even price − buy price) ÷ buy price × 100%Worked example (recompute it yourself)
Buy at 3,000 USDT with 1,000 USDT invested and a 0.1% fee on both sides:
Coins received = 1,000 × 0.999 ÷ 3,000 = 0.333. Break-even price = 3,000 ÷ 0.999² ≈ 3,006.01 USDT.
That is roughly a 0.20% gain just to get back to flat. The higher your fee rate, the larger that extra move becomes.
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 in mind, 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.
How much must the price rise to break even at 0.1%?
About 0.20%. At 0.05% it is about 0.10%; at 0.5% it is about 1.00% — roughly proportional to the fee rate.
Is break-even 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.