How to Calculate Arbitrage Break-Even Spread

The spread you see is not your profit. This formula helps you reject bad trades in seconds.

April 13, 2026 | 7 min read

The core formula

Break-even spread (%) = Buy fee + Sell fee + Slippage + (Withdrawal cost / Position size * 100)

Only trade when observed spread is clearly above break-even, with safety margin for execution delay.

Worked examples

Position sizeTotal fixed costsBreak-even spread
$1,0000.10% + 0.10% + 0.03% + $1 withdrawal0.33%
$5,0000.10% + 0.10% + 0.03% + $1 withdrawal0.25%
$20,0000.10% + 0.10% + 0.03% + $1 withdrawal0.235%

Execution buffer most traders forget

Safe rule: if your calculated break-even is 0.27%, require at least 0.35% displayed spread before acting.

Quick checklist before pressing buy

Use this with CoinNavigator tools

Open the Live Spread Monitor, shortlist routes above your threshold, then validate exact net numbers with the Arbitrage Calculator.

Related reads: Fees & Profit Guide | Risk Checklist | Best Coins for Arbitrage