What is the point to breakeven with Zerodha?

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Points to breakeven (breakeven point or BEP) in share trading is the price at which the net gains or net losses are almost 0 after paying the brokerage and taxes for both the buy and sell transactions and adding other expenses. Alternatively, you can say, when the Net Profit or Net Losses reaches close to zero, the price difference is the breakeven point for the transaction. 

The points to breakeven get calculated post considering brokerage and various other charges like Stamp Duty, STT, Exchange transaction charges, GST, and SEBI charges. Thus, the breakeven point would differ for each transaction type and segment.

Points to Breakeven Examples

Scenario 1 - While doing Equity Intraday Trading with Zerodha, you can reach the points to break even when you:

• Buy: 1000 Shares at Rs 100
• Sell: 1000 Shares at Rs 100.08
• Net Profit and Loss (after paying brokerages & taxes to Zerodha) = Rs (3.44)
• Point to breakeven or BEP = Rs 0.08

Scenario 2 - While doing Equity Delivery Trading with Zerodha, you can reach the points to break even when you:

• Buy: 1000 Shares at Rs 100
• Sell: 1000 Shares at Rs 100.22
• Net Profit and Loss (after paying brokerages & taxes to Zerodha) = Rs (3.25)
• Point to breakeven or BEP = Rs 0.22

The calculation of points to breakeven is a little tricky as you need to consider all the taxes and charges applicable on a transaction. The BEP does not consider DP charges, payment gateway charges that are not part of a contract note. Zerodha provides a brokerage calculator that reflects the points to breakeven for your easy and quick reference.

As Zerodha brokerage charges are the cheapest in the industry, the breakeven point with Zerodha is also the lowest.