TSB
Break Even Calculator
Calculate break-even win rate, price levels, and the number of trades needed to recover losses.
R
%
Break Even Analysis
Break Even Win Rate
33.3%
minimum to not lose money
Your Edge
+11.7%
Expectancy
+$0.35
Profit Factor
1.64
%
Break Even Price
Long Position BE
$100.10
price must reach to break even
Short Position BE
$99.90
Fee Cost
$0.10
Pips to BE
10
R
Recovery Analysis
Wins Needed to Recover
2
winning trades to break even
Total R Lost
-3R
R Per Win
+2R
Net After Recovery
+1R
Understanding Break Even in Trading
Break even is a critical concept that helps you understand the minimum performance required to not lose money. It's the foundation of risk/reward analysis.
Break Even Win Rate = 1 / (1 + R:R)
With 1:2 R:R → BE = 1/(1+2) = 33.3% win rate needed
Break Even Win Rates by R:R
| R:R Ratio | Break Even | Implication |
|---|---|---|
| 1:1 | 50.0% | Need to be right more than half the time |
| 1:1.5 | 40.0% | Can lose 6 out of 10 trades |
| 1:2 | 33.3% | Can lose 2 out of 3 trades |
| 1:3 | 25.0% | Can lose 3 out of 4 trades |
| 1:4 | 20.0% | Can lose 4 out of 5 trades |
| 1:5 | 16.7% | Can lose 5 out of 6 trades |
Key Insights
- Higher R:R = Lower win rate needed — This is why swing traders can be profitable with 30-40% win rate
- Account for fees — Spreads and commissions move your break-even point
- Edge = Win Rate - Break Even — Positive edge means you're profitable long-term
Frequently Asked Questions
What is break-even in trading?
Break-even in trading is the point where your total profits equal your total losses, resulting in zero net gain or loss. It can refer to win rate (minimum wins needed), price level (where a trade has no profit/loss), or number of trades (to recover losses).
How do you calculate break-even win rate?
Break-Even Win Rate = 1 / (1 + Risk:Reward). With 1:2 R:R (risking $1 to make $2), break-even = 1/(1+2) = 33.3%. You need to win more than 33.3% of trades to be profitable.
What win rate do I need with 1:1 risk reward?
With 1:1 risk:reward, you need >50% win rate to be profitable. At exactly 50%, you break even (minus fees). This is why many traders aim for higher R:R ratios — it lowers the win rate requirement.
How many winning trades to recover a loss?
It depends on your R:R ratio. With 1:1 R:R, you need 1 winner to recover 1 loser. With 1:2 R:R, you need 1 winner to recover 2 losers. With 1:3 R:R, you need 1 winner to recover 3 losers.
Should I move stop loss to break-even?
Moving to break-even too early can reduce overall profitability by getting stopped out before the trade reaches its target. However, it protects gains and removes risk. A common approach is to move to break-even after price moves 1R in your favor.
Track Your Break Even Performance
TSB Pro calculates your actual win rate, R:R, and shows whether you're above or below break even across all your trades.
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