What is the break-even point in forex?

The break-even point is the number of pips the price must move in your favor just to cover the cost of the spread and any commission charged by your broker.

Why does commission need to be converted to pips?

Commission is charged in account currency. Converting it to pips lets you see the true total cost of a trade on the same scale as your stop-loss and take-profit.

Cost Analysis Tool

Break-even Calculator

Find out how many pips your trade must move before you start making a profit, after accounting for spread and commissions.

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Calculate the minimum pip move needed to cover your trading costs

Spread Unit

Points (default) Pips

Spread (points)

Commission per Lot Round-trip ($)

Lot Size

Pip Value per Lot ($)

Round-trip commission includes both entry and exit. IC Markets Standard account: $0 commission (spread only). Raw account: $3.50 per lot per side = $7.00 round-trip. 1 pip = 10 points for standard forex pairs.

Spread Cost

Commission in Pips

Break-even Point

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This tool is for informational and educational purposes only. Trading costs vary between brokers and account types. Trading forex carries significant risk. Never trade with money you cannot afford to lose.

What is the Break-even Calculator?

The Break-even Calculator converts your broker’s spread and commission into the price move needed before a trade becomes profitable. Every trade starts in a small loss equal to the cost of execution: knowing exactly how many pips you need to claw back first is essential for scalping, for testing high-frequency strategies, and for comparing two broker offers fairly.

How to use it

Choose the currency pair.
Enter the lot size.
Enter the spread in pips.
Enter the commission per lot (per side or round trip, matching your broker’s quote).
Read the break-even distance in pips and in cash.

Worked example

You trade EUR/USD on a raw-spread account. The spread is 0.2 pips and the commission is $7 per round-trip lot. You open 1 standard lot.

Commission in pips: $7 / $10 per pip = 0.7 pips
Spread: 0.2 pips
Break-even: 0.2 + 0.7 = 0.9 pips

Price must move at least 0.9 pips in your favour just to flatten the trade.

Frequently asked questions

ECN vs market maker: which is cheaper at break-even?

It depends on volume and strategy. Market-maker spreads are wider but include the cost. ECN/raw-spread accounts have very tight spreads plus commission. For scalpers, ECN almost always wins; for occasional swing traders, the difference is small.

Why measure break-even in pips rather than cash?

Pips are comparable across position sizes and let you reason about strategies in price-move terms. Cash break-even depends on lot size and is only meaningful per trade.

Does slippage affect break-even?

Yes, although it is not part of the calculator's formula. Negative slippage on entry effectively widens your spread, pushing break-even further away. For volatile sessions, add a couple of pips of buffer when planning.

How does break-even relate to scalping?

Scalpers target small moves of 3 to 10 pips, so a 1-pip break-even can already eat 10 to 30 percent of the gross target. Tight execution costs are why most scalpers gravitate to ECN brokers.

Prefer your phone? The Break-even Calculator is also available as Break-even inside Lot Size Calculator GT, our free Android app bundling 8 forex calculators. Works fully offline.