Risk/reward calculator

Enter your entry, stop loss and target. We will calculate the ratio and how many trades you need to win to avoid losing money.

Optional: your historical percentage of winning trades.
Optional: amount in your currency to see expectancy in money.

Result

Fill in the fields with valid values to see the result.

Recent calculations

    Educational tool. Results are indicative and are not financial advice. Always verify values with your broker.

    How it works

    Ratio and win rate go together

    The risk/reward ratio compares what you can gain with what you can lose. At 1:1 you need to win more than 50%; at 1:2, more than 33.3%; at 1:3, more than 25%.

    Expectancy combines both: expectancy = win rate × ratio − (1 − win rate). Expressed in R (multiples of your risk), it tells you how much you win or lose on average per unit risked.

    FormulaRatio = |Target − Entry| ÷ |Entry − Stop| · Break-even win rate = 1 ÷ (1 + Ratio)

    Frequently asked questions

    What is a good risk/reward ratio?

    There is no magic value. A high ratio lets you be profitable with few wins, but a distant target is reached less often. What matters is that, combined with your real win rate, the expectancy is positive.

    What does positive expectancy mean?

    That, repeating the trade many times with those parameters, the average result is a gain. It relies on past statistics and does not guarantee future results.

    Are commissions and spread included?

    No. To be more realistic, subtract spread and commission costs from the target and add them to the stop distance.

    Why does it say the levels are inconsistent?

    On a buy, the stop must be below the entry and the target above. On a sell, the opposite.

    Related guide

    Risk/reward ratio and win rate: how they relateWhat win rate you need at each R:R ratio and how to calculate your strategy’s mathematical expectancy.

    Related concepts