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LiquidityLevels
Free tool

Risk / reward calculator with break-even win rate

Enter entry, stop and target. You get the risk-to-reward ratio and the win rate you need just to break even at that ratio.

How to use it

  1. Enter your entry, stop and target prices.
  2. Read the risk-to-reward ratio (1 : R).
  3. Read the break-even win rate for that ratio.
R = |target − entry| ÷ |entry − stop| · Break-even win rate = 1 ÷ (1 + R)
Example. Entry 5,500, stop 5,490, target 5,530: risk 10, reward 30 → 1 : 3.00; break-even win rate 25%.

About this calculator

A higher reward-to-risk ratio lowers the win rate needed to break even, and the reverse. A 1:1 trade needs a 50% win rate before costs; a 1:3 trade needs 25%. Fees, slippage and a realistic estimate of how often a setup works all matter. This tool is arithmetic, not a judgment about any trade.

Frequently asked questions

What is a good risk reward ratio?
There is no universal answer; it depends on how often your setup wins. The break-even win rate shows the minimum you would need at a given ratio.
How is break-even win rate calculated?
1 divided by (1 plus the reward-to-risk ratio). At 1:2 that is 33.3%, at 1:3 it is 25%.
Does this include fees?
No. Commissions and slippage raise the real break-even win rate.

Planning a trade with defined risk?

See ES overnight levels: structure, key levels and catalysts in futures and SPY/QQQ terms, before the 9:30 ET open.

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Informational calculator for reference only. Outputs are arithmetic, not quotes, recommendations or trade signals. LiquidityLevels provides educational market commentary, not financial advice.