How It Works

Learn how to use the Break Even Calculator to find the fastest path back to profit. Understand each recovery strategy and choose the one that fits your situation.

4 Simple Steps

1
Enter Your Position

Select your asset (crypto or stock), enter the quantity you hold, your average entry price, and see the current price auto-filled.

2
Set Your Recovery Budget

Enter how much additional capital you can invest to average down your position and reduce your break-even price.

3
Compare Strategies

Instantly see how each strategy (All-in, DCA, Martingale, Value Averaging) affects your break-even price, total investment, and potential profits.

4
Execute Your Plan

Choose the strategy that fits your risk tolerance and execute it on your preferred exchange. Use our scenario projections to plan for different outcomes.

What is a Break-Even Price?

Your break-even price is the price at which your investment returns to its original value -- where your profit/loss is exactly $0. If you bought 10 shares of a stock at $100 each ($1,000 total), your break-even price is $100.

When the price drops, you're at a loss. The break-even price tells you how much the price needs to recover for you to get your money back. The key insight is: by buying more at lower prices, you can reduce your average entry price and therefore your break-even price.

Example: Stock drops 50%

You bought 10 shares at $100 = $1,000 invested. Price drops to $50. Without action, you need a +100% recovery to break even. But if you buy 10 more shares at $50 ($500), your new average is $75. Now you only need +50% recovery instead of +100%.

Recovery Strategies Explained

Each strategy has different risk/reward characteristics. The calculator compares them all so you can make an informed decision.

All-in
Invest your entire budget at the current price in a single purchase.

Advantages

  • Simple to execute
  • Best if the price has bottomed out
  • No waiting for more dips

Risks

  • High risk if price drops further
  • No dollar-cost averaging benefit
  • Requires strong conviction in the bottom
When you believe the price has bottomed and want maximum exposure
DCA (Dollar Cost Averaging)
Split your budget into equal parts and invest at regular intervals or price drops. This reduces the risk of buying at the wrong time.

Advantages

  • Reduces timing risk
  • Buys more shares when price is lower
  • Emotionally easier to execute
  • Works well in volatile markets

Risks

  • Slower deployment of capital
  • Less effective if price rebounds quickly
  • Requires patience and discipline
Volatile markets where the bottom is uncertain
Martingale
Double (or multiply) your investment amount at each step. You buy more aggressively as the price drops further, maximizing the averaging-down effect.

Advantages

  • Most aggressive break-even reduction
  • Buys heaviest at lowest prices
  • Fastest path to break even if price recovers

Risks

  • Highest risk strategy
  • Requires large budget for later steps
  • Can lead to overexposure
High conviction that the asset will recover, and you have enough budget
Value Averaging
Set a target portfolio growth per period. Invest more when the price drops and less when it rises, keeping your portfolio on a steady growth path.

Advantages

  • Adaptive to market conditions
  • Invests more at lower prices naturally
  • Combines DCA discipline with value-based sizing

Risks

  • More complex to calculate
  • May require variable budget amounts
  • Can underperform in strong rallies
Disciplined investors who want a systematic, adaptive approach

Important Considerations

Averaging Down is Not Always the Best Option

If the fundamentals of an asset have changed, adding more money can increase your losses. Only average down on assets you still believe in long-term. Sometimes cutting losses is the smarter move.

Risk Management

Never invest more than you can afford to lose. The strategies shown here are for educational purposes. Consider your total portfolio allocation and diversification before adding to a losing position.

Fees and Taxes

The calculator does not account for trading fees, spreads, or tax implications. Factor these into your real-world calculations. Multiple trades (DCA, Martingale) will incur more fees than All-in.

Past Performance

The scenarios and projections shown are hypothetical. Past price movements do not guarantee future results. Always do your own research before making investment decisions.

Ready to Calculate Your Break Even?

Use our free calculator to compare strategies and find your fastest path back to profit.