calc.forex

Risk-Reward Ratio Calculator

Get the risk-reward ratio of a trade and the win rate you need to break even at that ratio.

Stop and target as

Reference price filled in — type to use your own.

Contract specs: 1 lot = 100,000 units, 1 pip = 0.0001

Standard forex lots are 100,000 units of the base currency. Check the contract specification in your broker's platform (MT4/MT5: right-click the symbol → Specification).

Direction
lots

Example: 20 pips below entry. Type your own.

Example: 40 pips above entry. Type your own.

More options: trading costs
pips

Optional. Paid once per trade.

pips

Round turn. 1 pip = $10.00 per lot.

Risk : reward

1 : 2.00

Example stop and target. Enter your own.

Risk

20.0 pips

$200.00

Reward

40.0 pips

$400.00

Break-even win rate

33.3%

Before spread and commission

Show the math
  1. Risk (entry to stop)|1.12080 − 1.11880| ÷ 0.0001 = 20.0 pips
  2. Reward (entry to target)|1.12480 − 1.12080| ÷ 0.0001 = 40.0 pips
  3. Reward ÷ risk40.0 ÷ 20.0 = 2.00, so 1 : 2.00
  4. Win rate needed to break even1 ÷ (1 + 2.00) = 33.3%
  5. Risk in USD ($10.00 per pip for 1.00 lots)20.0 × $10.00 = $200.00
  6. Reward in USD40.0 × $10.00 = $400.00

Rates from ECB, gold-api.com, CoinGecko, FX reference 2026-10-15, checked 07:07 UTC. Use your broker's live quote to trade.

Embed this calculator

Quick answer

Risk-reward ratio = potential profit ÷ potential loss, and the win rate needed to break even is 1 ÷ (1 + R). At 1:2 you need to win 33.3% of trades before costs, at 1:1 you need 50% and at 1:3 you need 25%.

Worked examples: Risk-reward ratio

Break-even win rate by risk-reward ratio

The break-even win rate is the share of trades you must win just to cover the losers at a given ratio: 1 ÷ (1 + reward/risk). Expectancy is the average result per trade in R, where 1R is the amount risked.

Break-even win rate and expectancy per trade, before costs
Risk : rewardBreak-even win rateExpectancy at 40% winsExpectancy at 50% wins
1 : 0.566.7%−0.40R−0.25R
1 : 150%−0.20R0.00R
1 : 1.540%0.00R+0.25R
1 : 233.3%+0.20R+0.50R
1 : 2.528.6%+0.40R+0.75R
1 : 325%+0.60R+1.00R
1 : 420%+1.00R+1.50R
1 : 516.7%+1.40R+2.00R

Pure maths, no market data. Spread and commission raise the real break-even win rate, most of all on short stops.

What is the Risk-Reward Ratio Calculator?

The risk-reward ratio (R:R or RR) compares the distance from your entry to your stop loss (the risk) with the distance from your entry to your take profit (the reward). On its own it says nothing about whether a trade will work; combined with your win rate it tells you whether a strategy can make money.

Ratio = |Take profit − Entry| ÷ |Entry − Stop loss|
Break-even win rate = 1 ÷ (1 + Ratio)

A long on EUR/USD at 1.1000 with a stop at 1.0950 (50 pips) and a target at 1.1150 (150 pips) is 150 ÷ 50 = 1:3. The break-even win rate is 1 ÷ (1 + 3) = 25%: winning one trade in four covers the three losses, before costs.

Costs shift that figure. Spread and commission make every win smaller and every loss larger, so the real break-even win rate is a little higher; add your spread and commission under More options to see it.

How to use this calculator

  1. Instrument and Account currency — these set the pip size and convert risk and reward into money.
  2. Entry price — a reference price is filled in; type your planned entry.
  3. Direction — Long (buy) or Short (sell).
  4. Position size (lots) — used to express the risk and reward in your account currency.
  5. Stop loss price and Take profit price — until you type them, a typical stop for the instrument (20 pips on EUR/USD) and twice that as the target are used.

The result shows the ratio as 1 : R, the risk and reward in pips (or points) and in money, and the break-even win rate. If the stop or target is on the wrong side of the entry for the direction you chose, the calculator says so instead of showing a number. Show the math and Copy link with these numbers are below the result.

Worked example

A 1:2.5 long. Entry 1.2000, stop 1.1960 (40 pips), target 1.2100 (100 pips). Ratio = 100 ÷ 40 = 1:2.5; break-even win rate = 1 ÷ 3.5 = 28.6%. On 1 lot of a USD-quoted pair that is $400 at risk for $1,000 of potential reward.

A 1:0.8 long. Entry 1.2000, stop 1.1950 (50 pips), target 1.2040 (40 pips). Ratio = 40 ÷ 50 = 1:0.8; break-even win rate = 1 ÷ 1.8 = 55.6%.

Adding costs. Take the first trade with 1 pip of total cost. A win now nets 99 pips and a loss costs 41, an effective ratio of 2.41, so the break-even win rate rises from 28.6% to 41 ÷ 140 = 29.3%.

When to use it

  • Before entering — check that the target justifies the stop given your win rate.
  • Comparing setups — a 1:3 trade needs a 25% win rate to break even, a 1:1 trade 50%.
  • Reviewing a strategy — compare your actual win rate with the break-even rate for your average ratio.

Common mistakes

  • Placing targets to fit a ratio. A 1:3 target beyond the next major level may rarely be reached. Use the chart to set levels, then read the ratio.
  • Widening the stop to improve the trade. A wider stop lowers the ratio for the same target and, at the same size, increases the money at risk.
  • Ignoring win rate. A 1:5 ratio loses money if only 15% of trades win (break-even is 16.7%).
  • Leaving out costs. On short-term trades, spread and commission can take a large share of the reward.

Frequently asked questions

What is a good risk-reward ratio?

There is no single number; it depends on your win rate. The break-even win rate is 1 ÷ (1 + R): 50% at 1:1, 40% at 1:1.5, 33.3% at 1:2 and 25% at 1:3. A ratio is good if your realistic win rate is clearly above the break-even rate after costs.

Is a 1:3 trade always better than a 1:2 trade?

No. Expected value per trade is win rate × R − loss rate. A 60% win rate at 1:2 gives 0.6 × 2 − 0.4 = +0.8R per trade; a 30% win rate at 1:3 gives 0.3 × 3 − 0.7 = +0.2R.

How is the break-even win rate calculated?

Break-even win rate = 1 ÷ (1 + reward ÷ risk). For 1:2 that is 1 ÷ 3 = 33.3%; for 1:2.5 it is 1 ÷ 3.5 = 28.6%. This is before spread and commission.

Does risk-reward matter for scalping?

Yes, and costs matter even more. Scalpers often trade near 1:1 with high win rates, but a 1-pip cost on a 5-pip target changes the effective ratio considerably. Include costs when you compare the ratio with your win rate.

How does it relate to position size?

Risk-reward decides whether the trade is worth taking; position size decides how much to trade. Once you know the stop distance, the position size calculator gives the lot size that risks your chosen amount.

Related calculators

All 32 calculators

Brokers we partner with

Affiliate links. calc.forex is free and funded by affiliate commissions: if you open an account through a broker link on this site, we may be paid by the broker at no extra cost to you. This never changes the numbers our calculators produce.

Risk warning: CFDs and leveraged forex are complex instruments and come with a high risk of losing money rapidly due to leverage. 74–89% of retail investor accounts lose money when trading CFDs with the brokers listed here. Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.