Calculate price needed to recover from losses. Determine breakeven points to plan recovery strategy effectively.
Breakeven Price
₹100.00
Gain Needed
25.00%
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A Breakeven Calculator helps traders determine the price level at which they need to sell to recover from a loss and return to their original capital. When a stock falls by a certain percentage, it needs to gain MORE than that percentage to break even due to mathematical principles. For example, a 50% loss requires a 100% gain to break even. This calculator shows you the exact percentage gain needed and target price to recover from any loss. Understanding breakeven math is crucial for realistic profit targets and avoiding revenge trading.
Math asymmetry! If you have ₹1,000 and lose 50%, you have ₹500. To get back to ₹1,000, you need ₹500 gain, which is 100% of your current ₹500 capital. The percentage is calculated on a smaller base after loss. This is why even 'small' 20-30% losses are serious - they need 25-43% gains to recover.
Professional traders typically use 5-10% stop loss for swing trades, 2-3% for day trades. Once loss exceeds 20%, recovery becomes challenging (needs 25% gain). Beyond 30% loss, you're in deep trouble (needs 43% gain). Never let losses exceed 20-25%. Better to take small loss and redeploy capital in better opportunity than hold hoping for recovery.
Only if: 1) Original thesis still valid, 2) Stock fell due to market, not fundamentals, 3) You have capital available, 4) You're not violating position sizing rules. Averaging down reduces breakeven price but increases total exposure. Example: Bought 100 @ ₹500, now ₹400. Buy 100 more @ ₹400, your average is ₹450, but you've doubled exposure. Risky if stock continues falling.
Depends on returns: At 10% annual, needs ~4 years. At 15% annual, ~2.5 years. At 20% annual, ~1.8 years. But remember opportunity cost - that capital could earn returns elsewhere. Often better to cut loss, invest in growing stock. Example: ₹100K down 30% = ₹70K. Hold 3 years to recover to ₹100K OR invest ₹70K in stock giving 20% for 3 years = ₹121K.
Yes! Benefits of booking losses: 1) Can offset gains for tax reduction, 2) Releases capital for better opportunities, 3) Resets psychology. In India, you can offset short-term losses against short-term gains, long-term against long-term. Carry forward losses for 8 years. Sometimes it's better to book loss for tax benefit than hold hoping for recovery.
New Average = [(Qty1 × Price1) + (Qty2 × Price2)] / (Qty1 + Qty2). Example: 100 shares @ ₹500, add 100 @ ₹400: Average = [(100 × 500) + (100 × 400)] / 200 = ₹450. New breakeven is ₹450 (not ₹500), but total exposure doubled from ₹50K to ₹90K. Use cautiously!
They rarely face them due to strict stop losses! Pros: 1) Never let single trade lose >2%, 2) Exit if down 5-7% from portfolio peak, 3) Reduce position sizes after losses, 4) Don't try to 'make back' losses quickly. If 20% drawdown occurs, they reduce trading size by 50% until recovering to -10%, then gradually normalize. Discipline prevents large losses.
Evaluate honestly: 1) Is company fundamentally broken? (Sell immediately), 2) Temporary market overreaction? (Consider holding if thesis intact), 3) Do you have better opportunities? (Opportunity cost of holding). Remember: 40% loss needs 66.67% gain to recover. Ask yourself: Will this stock give 67% gain faster than others can give 20-30%? Usually answer is 'no' - cut loss, move on.