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Risk/Reward Calculator — Trade Planning Tool

The risk/reward calculator evaluates any trade setup before you enter. Input your entry price, stop loss, and take profit targets to instantly see your risk-reward ratio and the minimum win rate you need to be profitable over time. Professional traders target a minimum 1:2 R:R on every trade. Trading with poor risk/reward ratios is one of the leading causes of retail trader losses — even a strategy with a 60% win rate can lose money consistently if average losses are larger than average wins.

Updated August 7, 2026

Risk / Reward CalculatorResults update instantly
Risk
Reward

Results

R:R Ratio

1:2.00

Risk (pts)

0.0050

Reward (pts)

0.0100

Min Win Rate to Break Even

33.3%

✓ Excellent setup — 1:2+ R:R is professional grade.

Formula Used

R:R Ratio = (Take Profit Distance) ÷ (Stop Loss Distance)

How to Use the Risk / Reward Calculator — Step by Step

  1. 1

    Enter your entry price

    Input the price at which you plan to enter the trade. This is your buy price for a long trade or sell price for a short.

  2. 2

    Set your stop loss price

    Enter the price level where you will exit the trade if it moves against you. This defines your maximum risk on the trade.

  3. 3

    Set your take profit price

    Enter your target price where you will close the trade in profit. Make sure this is realistic based on market structure, not just an arbitrary level.

  4. 4

    Read your R:R ratio

    The calculator instantly shows your risk/reward ratio, the distance in points for both risk and reward, and the minimum win rate you need at this R:R to be profitable long-term.

About the Risk / Reward Calculator

The risk/reward calculator evaluates any trade setup before you enter. Input your entry price, stop loss, and take profit targets to instantly see your risk-reward ratio and the minimum win rate you need to be profitable over time. Professional traders target a minimum 1:2 R:R on every trade. Trading with poor risk/reward ratios is one of the leading causes of retail trader losses — even a strategy with a 60% win rate can lose money consistently if average losses are larger than average wins.

This free risk / reward calculator works directly in your browser — no download, no registration, and no delay. All calculations are performed client-side, so your trading data is never transmitted to a server.

The formula used is: R:R Ratio = (Take Profit Distance) ÷ (Stop Loss Distance). This is the same formula used by professional traders and institutional risk managers worldwide.

Supported asset classes include: Forex, Stocks, Crypto, Futures. Each asset class applies the correct unit conventions so results are always accurate regardless of the market you are trading.

Risk / Reward Calculator — Frequently Asked Questions

Q.What is a good risk-reward ratio?

A 1:2 risk-reward ratio is generally considered the minimum for professional trading. This means you aim to make $2 for every $1 you risk. At 1:2 R:R, you only need to win 34% of trades to break even.

Q.How do you calculate risk-reward ratio?

R:R = Potential Profit ÷ Potential Loss. If your stop loss is 20 pips away and your take profit is 60 pips away, R:R = 60 ÷ 20 = 1:3.

Q.What win rate do I need at a 1:2 risk-reward ratio?

At 1:2 R:R, you need a win rate of at least 33.4% to break even. At 1:3 R:R, just 25.1% win rate achieves break-even. This is why high R:R ratios allow profitable trading even with more losses than wins.

Q.Should I always use the same R:R ratio?

Not necessarily. The optimal R:R depends on your strategy's win rate. A scalper with 70% win rate can profitably use 1:1 R:R. A swing trader with 40% win rate needs at least 1:1.5. Match R:R to your system's historical win rate.

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