Frequently Asked Questions

Everything you need to know about break-even calculations, averaging down, and recovery strategies.

General

What is a break-even calculator?

A break-even calculator helps you determine the price at which your investment will return to its original value (profit/loss = $0). It also shows how adding more capital at lower prices can reduce your break-even price, helping you recover from losses faster.

Is this calculator free?

Yes, the break-even calculator is completely free to use. No sign-up or account required. We may earn a small commission if you sign up for an exchange through our affiliate links, at no extra cost to you.

Does it work for both stocks and crypto?

Yes. You can use it for any stock (AAPL, TSLA, NVDA, etc.) or cryptocurrency (BTC, ETH, SOL, etc.). For crypto, the current price is automatically fetched from CoinGecko. For stocks, prices come from Yahoo Finance.

How accurate are the prices?

Cryptocurrency prices are fetched in real-time from CoinGecko and are generally very accurate. Stock prices come from Yahoo Finance and may have a slight delay (typically 15 minutes for US markets). You can always enter a price manually if you prefer.

Does the calculator account for fees and taxes?

No. The calculations show theoretical results without trading fees, spreads, or tax implications. In practice, you should factor in your exchange's trading fees and any applicable capital gains taxes.

Strategies

What is averaging down?

Averaging down means buying more of an asset after its price has dropped, which lowers your average cost per unit. For example, if you bought 10 shares at $100 and then bought 10 more at $50, your new average would be $75 instead of $100.

What is DCA (Dollar Cost Averaging)?

DCA is a strategy where you split your total budget into equal parts and invest them at regular intervals or at pre-set price drops. This reduces the risk of investing everything at the wrong time.

What is a Martingale strategy?

Martingale is a strategy where you double (or multiply) your investment amount at each step. If you start with $100 and use a 2x multiplier, your next buys would be $200, then $400. This means you buy the most at the lowest prices, aggressively reducing your average.

What is Value Averaging?

Value Averaging sets a target portfolio growth per period. Instead of investing a fixed dollar amount, you invest whatever is needed to reach your target portfolio value. If the price drops more, you invest more.

Which strategy is best?

There's no single best strategy -- it depends on your situation. DCA is safest for uncertain markets. Martingale is most aggressive but riskiest. All-in is best if you believe the bottom is in. Value Averaging is a disciplined middle ground.

Should I always average down?

No. Averaging down only makes sense if you believe the asset will eventually recover. If the fundamentals have changed, adding more money can multiply your losses. Sometimes cutting your losses is the smarter decision.

Using the Calculator

What does 'Break Even Change' mean?

Break Even Change shows the percentage the price needs to increase from the current price to reach your break-even point. A lower percentage is better.

What is 'Profit if +20%'?

This column shows your profit or loss if the asset's price increases by 20% from the current price. It helps you compare how each strategy performs in a moderate recovery scenario.

What are Scenario Projections?

Scenario Projections show what happens to your position at various price levels (-30% to +100%). This helps you understand the range of outcomes and plan accordingly.

Can I customize the DCA and Martingale settings?

Yes. Click 'Advanced Strategy Settings' after entering your budget. You can customize the number of steps, expected price drop, Martingale multiplier, and more.

Why don't I see strategy results?

Strategy results only appear when you enter a Recovery Budget. If you leave the budget empty, the calculator only shows your current position analysis.

Data & Privacy

Is my data stored or shared?

No. All calculations happen in your browser. We do not store, track, or share your portfolio data.

Do I need to create an account?

No. The calculator works immediately without any sign-up.

Still Have Questions?

Try the calculator yourself -- it's free and instant.