The break-even price is the price at which an asset must trade for you to recover exactly what you paid, with no profit and no loss.
The break-even price is the point where your investment is neither up nor down. At this price, selling would return exactly your cost basis, including any fees.
For a single purchase, your break-even is simply your average buy price plus trading costs. For multiple purchases at different prices, it is the weighted average cost across all your buys.
Knowing your break-even is helpful for setting expectations and exit plans. If an asset is trading below your break-even, you are at an unrealized loss; above it, you are in profit.
Break-even shifts when you add to a position. Buying more at a lower price pulls your break-even down (dollar-cost averaging), while buying higher pushes it up.
Say you buy 10 units at $100 and later 10 more at $80, spending $1,800 for 20 units. Your break-even is $1,800 ÷ 20 = $90 per unit. The asset must trade at $90 (a little more once fees are included) before you can sell without a loss.
Add up the total amount you spent, including fees, then divide by the number of units you hold. The result is the weighted average price at which selling would return exactly what you paid.
Only if you buy at a price below your current average. Buying more units at a lower price pulls the weighted average down, while buying at a higher price pushes your break-even up.
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