Calculator · free · runs in your browser
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.
When to use itWhen deciding whether a setup is worth taking at all, given how often you are right.
How to use it
Enter the entry, the stop and the target you would actually use — not the best case.
Read the break-even win rate: how often this kind of trade must work just to stay flat.
Compare it with your own record. No record yet? Keeping one is the first job, and a demo account is enough.
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.
Understand the number, then use it
The lesson behind it · 9 min
Risk/Reward and Expectancy
An R-multiple expresses every outcome as a multiple of what you risked. Once results are in R, any reward-to-risk ratio implies a break-even win rate, and expectancy tells you the average — never the next trade.
Read the lesson →
The other calculators
- Position Size Calculator
Before every trade — the one number that decides how much a wrong idea costs.
- Trading Fee Calculator
When choosing an exchange, and before any strategy that trades small and often.