The break-even point is the time at which your investment gains equal your total costs (purchase cost, fees, taxes). Before break-even, you're effectively in a loss position even if the market is up.
How do fees affect break-even?
High fees dramatically extend your break-even period. A 1% annual fee on a ₹10 lakh investment costs ₹10,000/year. At 12% returns, this adds roughly 1–2 extra years to break even vs a zero-fee index fund.
Why does inflation matter for break-even?
Nominal gains that don't beat inflation represent a real loss in purchasing power. Always calculate real break-even (after inflation) to understand your true investment performance.
📬 Get Free FY 2025-26 Finance Updates
Tax changes, RBI rate updates, new calculators — straight to your inbox. 100% free, unsubscribe anytime.
✅ You're subscribed! Check your inbox for a confirmation.