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R-Multiple & Breakeven Win Rate Reference Card

Jason Parker, founder of Trading Habits
Most traders blow up chasing the setup they missed, not the one in front of them.
Jason Parker, Founder of Trading Habits

A static lookup table for the relationship between risk/reward ratio and breakeven win rate, before any trading costs. No inputs, no calculation — print it and pin it next to your monitor as a quick sanity check.

Table 1: Win Rate Needed to Break Even, by R-Multiple

R-multiple = reward divided by risk on a single trade (a 2R trade risks $1 to make $2). Breakeven win rate = 1 ÷ (1 + R).

R-MultipleRisk : RewardBreakeven Win Rate
0.5R1 : 0.566.7%
0.75R1 : 0.7557.1%
1R1 : 150.0%
1.5R1 : 1.540.0%
2R1 : 233.3%
2.5R1 : 2.528.6%
3R1 : 325.0%
4R1 : 420.0%
5R1 : 516.7%

Table 2: Minimum R-Multiple Needed to Break Even, by Win Rate

The same relationship read the other direction. Minimum R = (1 − win rate) ÷ win rate.

Win RateMinimum R NeededMinimum Risk : Reward
30%2.33R1 : 2.33
35%1.86R1 : 1.86
40%1.50R1 : 1.50
45%1.22R1 : 1.22
50%1.00R1 : 1
55%0.82R1 : 0.82
60%0.67R1 : 0.67
65%0.54R1 : 0.54
70%0.43R1 : 0.43

How to use this card

Not financial advice: This reference table is for general education about risk/reward math only. It does not account for trading costs, does not evaluate any specific trade or security, and is not a guarantee of any trading outcome. See our Terms of Service for full disclosures.
Jason Parker, founder of Trading Habits

Built by Jason Parker, founder of Trading Habits.