Risk / Reward Calculator
risk-reward• Get the risk/reward ratio (R:R) and break-even win rate from entry, stop-loss, and target. • Check whether a setup offers enough reward for the risk.
Add it to also see risk and reward amounts
Risk / reward
1 : 2.00
Risk
5.00%
Reward
10.00%
The minimum win rate needed to break even at this risk/reward.
Work back from a target ratio
Enter the ratio you want and see what target price it takes. Uses the entry and stop above.
Enter 2, for example, to get the target price that makes the ratio 1:2.
Win rate needed to break even
The larger the ratio, the lower the win rate you need.
The formula is 1 ÷ (1 + ratio). It excludes fees and slippage, so a real account needs a slightly higher rate.
What is the risk/reward ratio?
The risk/reward ratio compares the risk you take on a trade (the gap between entry and stop) with the reward you expect (the gap between target and entry). It is usually written like 1:2 — the higher the number, the more you aim to gain for what you risk.
Risk/reward = reward ÷ risk. Example: entry 10,000, stop 9,500 (risk 500), target 11,000 (reward 1,000) gives 1:2. Longs and shorts are calculated the same way.
The break-even win rate is the minimum win rate needed to break even at a given ratio. It is 1 ÷ (1 + ratio): about 33% at 1:2 and 50% at 1:1. A higher ratio lets you profit with a lower win rate. Fees and slippage are not included.
Frequently asked questions
How is the risk-reward ratio calculated?
target − entry
What target price gives me a 2:1 ratio?
Enter the ratio under Work back from a target ratio. The formula is target = entry + ratio × (entry − stop). From an entry of 10,000 with a 9,000 stop, a 2:1 ratio puts the target at 12,000, a 20% move.
What does break-even win rate mean?
The minimum share of trades you need to win just to break even at that ratio. The formula is 1 ÷ (1 + ratio): 50% at 1:1, 33.3% at 1:2, 25% at 1:3. So winning only 30% of the time can still come out ahead at 1:3.
Are fees and slippage included?
No — this is a price-only theoretical figure. Commission, tax and slippage all push the required win rate higher in practice, and the tighter your stop, the more those costs matter relative to the trade.
Is a higher ratio always a better trade?
The ratio alone does not tell you. Pushing the target further away improves the number but lowers the odds of ever reaching it. The ratio only means something alongside your actual win rate — this tool shows the relationship between the two, not whether to take the trade.