Risk/Reward Calculator

Calculate your risk-to-reward ratio by entering entry price, stop loss, and take profit levels.

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Number of shares, contracts, or units

Risk/Reward Ratio

0.00:1

Risk

$0.00

Reward

$0.00

Breakeven Win Rate by R:R

Breakeven Win Rate by R:R

The win rate you need to break even at different R:R ratios

1:1 R:R — needs 50% win rate
50 losses
2:1 R:R — needs 33% win rate
33 losses
3:1 R:R — needs 25% win rate
25 losses
4:1 R:R — needs 20% win rate
20 losses

Real Examples

How R:R affects your trading edge

Bad Trade
Position Size50 pts / 50 pts
Pair1:1
Stop Loss50 pts
Recovery needed50%
After 50 losses0%
Okay Trade
Position Size50 pts / 100 pts
Pair1:2
Stop Loss50 pts
Recovery needed33%
After 50 losses+50%
Good Trade
Position Size50 pts / 150 pts
Pair1:3
Stop Loss50 pts
Recovery needed25%
After 50 losses+100%

Common Mistakes

#1: R:R Without Win Rate

What traders do

Chasing high R:R ratios without considering your actual win rate

The consequence

1:1 R:R at 60% win rateNet +10%
3:1 R:R at 30% win rateNet -10% after spreads

What to do instead

R:R and win rate are two sides of the same coin. Evaluate them together.

#2: Take Profit Too Far Away

What traders do

Setting an unrealistic take profit just to achieve a high R:R

The consequence

Price hits your stop 30 times and your TP 10 times — your actual win rate is 25%, exactly at breakeven for 1:3 R:R.

What to do instead

Set take profit at technical levels, not at ratio targets.

#3: Stop Loss Too Tight

What traders do

Shrinking your stop loss to 10 pips just to get a better R:R

The consequence

Normal market noise takes you out repeatedly. Five false exits at 10 pips each = 50 pips lost. One 30-pip winner can't recover that.

What to do instead

Place your stop at technical levels, not at a number that makes the ratio look good.