Risk/Reward Calculator
Turn an entry, a stop and a target into a ratio — and into the win rate that ratio would need to break even.
Result
- Risk/reward ratio
- 1 : 3
- Risk per unit
- 5
- Reward per unit
- 15
- Break-even win rateIgnoring fees, funding and slippage.
- 25%
Formula
long: risk = entry − stop, reward = target − entryshort: risk = stop − entry, reward = entry − targetratio = reward ÷ riskbreak-even win rate = 1 ÷ (1 + ratio)
Assumptions and limits
- A high ratio is not an edge on its own. A 1:5 setup you only hit 10% of the time still loses money.
- Break-even win rate ignores fees, funding and slippage, all of which push the real requirement higher.
- It assumes stop and target both fill at the prices you typed, and that you actually hold to one of them.
- Nothing here says the target is realistic. Distance to a level is not the same as probability of reaching it.