Win rate needed to break even
| Risk-reward | Break-even win rate |
|---|---|
| 1:1 | 50% |
| 1:1.5 | 40% |
| 1:2 | 33.3% |
| 1:3 | 25% |
Ignores spreads, commissions and slippage, which slightly worsen real results. For education only, not trading advice.
What this risk-reward calculator does
This risk-reward calculator compares how much you could lose with how much you could gain on a trade, before you place it. Enter your entry, stop-loss and take-profit prices, and it shows:
- your risk-reward ratio, for example 1:2
- the risk and reward in pips
- the win rate you need to break even with that ratio
- your potential profit if the target is hit, based on the amount you're risking
It works for buy and sell trades on currency pairs and gold.
How to use it
- Trade direction: buy (long) or sell (short).
- Pip size: 0.0001 for most pairs, 0.01 for yen pairs. For gold, choose your broker's definition.
- Entry, stop-loss and take-profit prices: from your trading plan or platform.
- Amount you're risking (optional): to see the profit if your target is reached.
The formula
Risk-reward ratio = 1 : (reward ÷ risk)
Break-even win rate = 1 ÷ (1 + reward ÷ risk)
Example: buying EUR/USD at 1.0850, with a stop at 1.0825 (25 pips) and a target at 1.0900 (50 pips), gives 1:2. You'd need to win about 33% of trades like this to break even, before costs.
Break-even win rates
| Risk-reward | Break-even win rate |
|---|---|
| 1:1 | 50% |
| 1:1.5 | 40% |
| 1:2 | about 33% |
| 1:3 | 25% |
For the full explanation with worked examples, read our guide to the risk-reward ratio in forex.
Use it with position sizing
The risk-reward ratio tells you whether a trade is worth taking. Your lot size should come from how much you're willing to risk and your stop-loss distance. Use our position size calculator for that, and see the 2% rule in forex.
Frequently asked questions
What is a good risk-reward ratio?
Many traders aim for at least 1:1.5 or 1:2, but the right ratio depends on your strategy's win rate and realistic price targets.
Does the calculator include spreads?
No. Spreads, commissions and slippage slightly worsen real results, especially on trades with tight stops.
Can I use it for gold?
Yes. Choose the pip size your broker uses for gold, or enter prices and read the risk and reward in points.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools and guides
This calculator is for education only and is not financial or trading advice. Leveraged trading carries a high level of risk, and you can lose more than your deposit.