Risk:Reward Calculator
Evaluate any trade setup before you enter. Know your R:R ratio and the minimum win rate you need to be profitable.
A 1:2 R:R means you only need to win 33.3% of trades to break even. Higher R:R = lower required win rate.
What is Risk:Reward ratio and why should you care?
Risk:Reward ratio (R:R) measures how much you stand to gain compared to how much you risk on a trade. A 1:2 R:R means you risk 50 pips to make 100 pips. It is one of the most powerful levers a trader controls — entirely independent of market prediction skill.
Why a 1:2 minimum is the standard
At a 1:2 R:R, you only need to win 33.3% of your trades to break even. At 1:3, just 25%. This means you can be wrong more than half the time and still be profitable — if you maintain discipline on trade selection and sizing.
Break-even win rate formula
For a 1:2 trade: 1 ÷ (1 + 2) × 100 = 33.3%. For a 1:3 trade: 1 ÷ (1 + 3) × 100 = 25%. The higher your R:R, the lower your required win rate.
How to use this calculator
- Enter your planned entry price.
- Enter your stop loss level.
- Enter your take profit target.
- Read your R:R ratio and break-even win rate instantly.