How is Break-even Price calculated

philliesphan0880

There is a column called break-even price in investment view. What does it represent and how is it different from avg cost per share? I have an example where I purchased 3 lots at different prices and have sold none. Avg Cost per Share = total cost / Share qty but breakeven is showing as different for each lot. I have latest updates applied Quicken R39.23

Boatnmaniac

The break-even price takes into account capital gains taxes (both short-term and long-term).  Cost basis looks only at the cost(s) associated with the acquisition of the security and as adjusted for things like splits.  If you have not already done so, read the following Help article:  https://help.quicken.com/display/WIN/term/8422830.

Jim_Harman

In your example, is the break-even price for each lot the same as the price you paid for the lot? 

I am not familiar with the calculation, but I suppose it would be affected by splits, spin-offs, return of capital, and similar activities.

Boatnmaniac

The break-even price takes into account capital gains taxes (both short-term and long-term).  Cost basis looks only at the cost(s) associated with the acquisition of the security and as adjusted for things like splits.  If you have not already done so, read the following Help article:  https://help.quicken.com/display/WIN/term/8422830.

philliesphan0880

@Boatnmaniac Thank you. That clarifies for me perfectly.