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Break-even Calculator

The move required to cover spread, commission and financing before anything is profit.

Inputs it asks for
Risk per trade value
Reward per trade value
Cost per trade (spread + commission) value
Formula shown · assumptions disclosed

What it computes

The move required to cover spread, commission and financing before anything is profit. The page states the equation, the units it expects and the rounding it applies, so the result can be reproduced by hand.

Where it sits in the chain

A calculator gives you a number. This one feeds the next: account to risk, risk to position size, position size to the trade, and the trade to expectancy, drawdown and risk of ruin.

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Inputs
Result
Net reward-to-risk 2.00:1
Break-even win rate 33.3%
Before costs 33.3%
Cost penalty 0.0 points
The break-even win rate is 1 / (1 + R). Costs raise it, and on tight stops they raise it a lot.
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The formula

net R = (reward − cost) ÷ (risk + cost)
break-even win rate = 1 ÷ (1 + net R)

Costs are subtracted from the reward and added to the risk, because they are paid whichever way the trade goes.

Worked example

Risking 100 to make 200, with no costs and then with 10 of cost:

no cost : R = 2.00 → break-even 33.3%
10 cost : R = (200−10) ÷ (100+10) = 1.73
→ break-even 36.7%

Three and a half points of win rate, from a cost of 10 against a risk of 100. On tighter stops the penalty is larger.

What it assumes

  • Cost is per round turn — spread plus commission both sides.
  • It assumes a fixed reward and risk. A strategy with variable exits needs the averages of its closed trades.

Common questions

What win rate do I need to break even?

One divided by one plus your reward-to-risk ratio. At 1:1 that is 50%, at 1:2 it is 33.3%, at 1:3 it is 25% — before costs, which raise all three.

How much do costs really matter?

In proportion to how tight your stop is. A 1-pip spread on a 10-pip stop moves the break-even win rate by several points; on a 100-pip stop it is negligible.

Does moving my stop to break-even help?

It converts some winners into scratches and does nothing to the losers, so it lowers both the win rate and the average win. Whether that is worth the reduced variance is a question about you, not about the arithmetic.

What to work out next

A calculator answers one question and raises the next. These are the ones this figure feeds into.

Commission Calculator

Round-turn cost per trade, and what share of your risk it eats.

Risk/Reward Calculator

Compare reward with risk, and read off the win rate that ratio needs to break even.

Expectancy Calculator

Average outcome per trade from win rate and average win and loss. The number win rate hides.

Break-even Calculator · rounding shown to the precision displayed

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