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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.
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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
1What 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.
2How 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.
3Should 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.
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Calculator results are estimates only — not financial advice. Trading involves significant risk of loss. Full risk disclosure.