Risk-reward calculator and break-even win rate
R:R tells you how many units you aim to make per unit risked, but it must be read together with win rate. This tool gives both.
Formula checked against worked examples · Last reviewed 2026-10-05
Break-even = risk ÷ (risk + reward). Expectancy = win% × R:R − loss%. Valid only if the win rate you enter comes from your own real data. Spread and commission are not included. This number does not predict the future.
How to use
- Enter entry, stop loss and take profit prices.
- Read R:R and the win rate needed to break even.
- If you have real statistics, enter your win rate to see expectancy per trade.
Formula
R:R = take-profit distance ÷ stop distance; break-even win rate = risk ÷ (risk + reward); expectancy = win% × R:R − loss%
Example
Entry 2,000, stop 1,995, take profit 2,010: risk 5, reward 10, R:R 1:2, break-even win rate 33.3%. At a real win rate of 40%, expectancy = 0.4 × 2 − 0.6 = +0.2 R per trade (before costs).
Hypothetical example to explain the formula. It is not real market data and not a trading recommendation.
Frequently asked questions
- Is a high R:R always better?
- No. A high R:R usually comes with a lower win rate. Read both together and include costs.
- Does positive expectancy mean I will profit?
- No. It only holds if the win rate you enter comes from enough real data, and it predicts nothing about any single trade.
Limits and risk
This tool is educational. Results are estimates from the numbers you enter and are not investment advice. Trading CFDs is high risk and you can lose everything. Read the full risk warning
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