Trading Risk Tool

Risk/Reward Ratio Calculator

Enter your entry, stop-loss, and take-profit prices to see your reward-to-risk ratio and the win rate you need just to break even. Works for forex, crypto, stocks, and any other market.

100

The price you plan to open the trade at.

95

Where you exit if the trade goes against you.

110

Where you take profit if the trade works out.

Reward : Risk 2.00 : 1

Risking 5.0000 to make 10.0000. You need to win just 33.3% of trades to break even at this ratio.

Risk (per unit)5.0000
Reward (per unit)10.0000
Break-even win rate33.3%

For educational purposes only. Read our risk warning before trading.

The Math

How the Reward-to-Risk Ratio Is Calculated

Your risk is the price distance from entry to stop-loss; your reward is the distance from entry to take-profit. Divide reward by risk to get the ratio. From that ratio you can read the break-even win rate — the share of trades you must win for wins and losses to cancel out.

Quick Reference

Break-even win rate by ratio

Reward : RiskBreak-even win rate
1 : 150%
1.5 : 140%
2 : 133.3%
3 : 125%
4 : 120%

Frequently Asked Questions

What is a good risk/reward ratio?

Many traders look for at least 2:1, meaning they aim to make twice what they risk. A higher ratio lowers the win rate you need to break even, but it usually means a more distant target that price reaches less often. The right balance depends on your strategy's actual hit rate.

How does R:R relate to win rate?

They trade off against each other. At 1:1 you must win half your trades to break even; at 2:1 you only need about a third; at 3:1 just a quarter. The calculator shows the exact break-even win rate so you can check whether your strategy realistically clears that bar.

Does high R:R guarantee profit?

No. A high ratio only lowers the win rate you need to break even — it says nothing about how often price actually hits your target. Distant targets are reached less frequently, so a tempting 5:1 setup can still lose money if your real win rate falls below its break-even point. Always pair the ratio with a realistic hit rate.

Does this work for any market?

Yes. The ratio is based purely on the price distances between your entry, stop, and target, so it applies to forex, crypto, stocks, indices, and futures alike. Enter prices in whatever units your market quotes — dollars, points, or pips — and the ratio and break-even win rate stay valid.

From the Blog

Related Reading

Go deeper on the market behind these numbers — strategy, risk and setup guides from our desks.

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