Skip to main content
FreeNo login23 instruments

Risk/Reward Calculator

Calculate the risk-to-reward ratio of any trade. See your potential loss, potential profit, R:R ratio, and the minimum win rate needed to break even.

Loading live rates…

Featured

Deriv

4.0
Open Account

Capital at risk · T&Cs apply

Pre-loaded for your pair

Risk/Reward Calculator Formula

R:R = Take-Profit Pips ÷ Stop-Loss Pips

Example: SL = 20 pips, TP = 60 pips → R:R = 3.0 · Break-even win rate = 25%

Risk/Reward Calculator FAQ

1

What is a good risk-to-reward ratio?

A minimum 1:2 risk-to-reward ratio is recommended. This means for every $1 risked, you target $2 profit. At 1:2 R:R, you only need a 33% win rate to break even.

2

How is break-even win rate calculated?

Break-even win rate = 1 / (1 + R:R). At 1:2 R:R = 1/(1+2) = 33%. At 1:3 R:R = 25%. Higher R:R allows lower win rates.

3

Should I always aim for high R:R?

Not necessarily. Very high R:R (1:5+) typically means wider take-profit targets, which hit less often. Balance R:R with realistic price targets based on market conditions.

Find the right broker for you

Get matched to brokers for your country, market and style — free, ~30 seconds.

Matching for:Travelling or on a VPN? Change it.
Find my match

Related calculators

Related Trading Terms

Top Forex Brokers

Full rankings
Interactive Brokers
Interactive Brokers
4.4/5From 0.2 pipsSEC, MAS
Visit
Kraken
Kraken
4.4/5From 0.2 pipsCFTC, FCA
Visit
Forex.com
Forex.com
4.4/5From 0.8 pipsMAS, CFTC
Visit
Coinbase
Coinbase
4.4/5From 0.5 pipsFCA, SEC
Visit

Find a broker

Ready to put your calculations to work?

Compare brokers with the lowest spreads, best execution and reliable regulation.

Calculator results are estimates only — not financial advice. Trading involves significant risk of loss. Full risk disclosure.