New to this? Read the plain English guide first.
Find your break-even price and the gain you need after a loss.
Your break-even price is what the stock must reach for you to get back what you paid, fees included. After a loss, the gain you need is bigger than the loss itself. A 20 percent drop needs a 25 percent gain to get back to even.
Break-even price = (shares x price paid + fees) divided by shares. Gain needed = 1 divided by (1 – loss) minus 1.
Want the full story with a worked example? Read the Break-Even Price guide, or see all of our free calculators. For learning only, not advice.