Liquiditrax
Trader tools

Risk/Reward & Breakeven Win-Rate Calculator

A risk/reward ratio calculator shows how much you stand to gain versus lose on a trade, and the win rate you need to break even. Enter your entry, stop, and target — or type a ratio directly — and set your win rate to see expectancy per trade in R and a plain-English verdict. Built for forex, futures, and crypto traders sizing setups before they click buy.

Your setup

Enter your entry, stop, and target — or type a ratio directly — then set your win rate.

Define risk/reward

Risk 2 · reward 4 · Long

50%
Risk / reward ratio
1 : 2.00
Risk 1R to target 2.00R
1R risk2.00R reward
Breakeven win rate
33.3%
just to not lose money
Expectancy
+0.50 R
per trade, in R
Your win rate50%
Breakeven marked at 33.3%.
Verdict

At a 50% win rate, a 1 : 2.00 setup is profitable — about +0.50R per trade on average.

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Educational calculator. Not financial advice. Results are estimates.

Frequently asked questions

What is a good risk/reward ratio?
Many traders look for at least 1:2 (risking 1 to make 2), but the right ratio depends on your win rate. A high win rate can be profitable at 1:1, while a low win rate needs a larger reward multiple. Use the breakeven win rate to judge any setup.
Why does breakeven win rate matter?
The breakeven win rate is the share of trades you must win just to avoid losing money at a given ratio: breakeven = 1 ÷ (1 + R:R). If your actual win rate is higher, the setup has positive expectancy; if it's lower, the setup loses money over time.
What is expectancy?
Expectancy is the average profit or loss per trade, measured in R (multiples of what you risk). Expectancy = (win rate × R:R) − (1 − win rate). A positive number means the strategy makes money on average across many trades.
How is the risk/reward ratio calculated?
Risk is the distance from entry to stop loss; reward is the distance from entry to target. The ratio is reward ÷ risk — so risking 20 pips to make 40 pips is 1:2. You can also type the ratio directly instead of prices.
Does a higher risk/reward ratio guarantee profit?
No. A higher ratio lowers the win rate you need, but targets set further away are hit less often. Expectancy — win rate and ratio together — is what determines whether a strategy is actually profitable.

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