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Risk-to-reward calculator

This calculator compares the distance to your take-profit against the distance to your stop-loss, showing the win rate needed to break even, as well as your mathematical expectancy when you enter your win rate.

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Result

Results are calculations for education based on what you entered, not investment advice. Contract specs and costs differ between brokers. Exchange rates and starting prices from ExchangeRate-API, Currency-API and Coinbase, refreshed hourly.

What Is the Risk-to-Reward Ratio?

It is the relationship between what you stand to lose if price hits your stop-loss and what you stand to gain if it reaches your take-profit. A 1:2 ratio means you are risking $1 to make $2.

Break-Even Win Rate

Break-even rate = 1 ÷ (1 + R). With a 1:2 ratio, you only need to win 33.3% of your trades to break even, whereas a 1:1 ratio requires 50%.

Mathematical Expectancy

Expectancy per trade = (Win Rate × R) − (Loss Rate × 1). If positive, the strategy is mathematically profitable over the long run, provided your win rate and execution remain consistent.

Common Mistakes

Frequently asked questions

What is the best risk-to-reward ratio?

There is no single ideal ratio; many traders aim for at least 1:1.5 or 1:2, but what matters most is the balance between the ratio and your actual win rate.

Can you be profitable with a win rate below 50%?

Yes, as long as your average win is larger than your average loss. With a 1:3 ratio, for instance, winning just over 25% of your trades is enough to break even.

Other calculators you may need

Position size (lot) calculator How many lots or shares to buy so your loss never exceeds your limit, with pip value and required margin. Pip value calculator What one pip is worth in your account currency for any trade size, with a table of common sizes. Margin and leverage calculator The margin your broker holds to open the trade, the notional value of the position and your free margin. Profit and loss calculator What the trade really made after spread, commission and swap, the break-even price and the price you need for a given profit. Swap (overnight fee) calculator The cost of holding a trade night after night, with the triple-swap night and an Islamic account comparison. Margin level and stop-out calculator Your current margin level, the price of the margin call and the price where the broker closes your trade.