Calculate a trade's risk/reward ratio from the entry price, stop loss and target, and the minimum win rate needed to break even.
For information only. Not financial advice. Always check your broker's conditions before trading.
How it works
The risk/reward ratio compares what you risk down to the stop loss with what you can make up to the take profit. A 1:2 ratio means that for every unit you risk, you expect to make two.
The calculator detects whether the trade is a buy or a sell based on where you place the stop and the target, and tells you the minimum win rate you need to avoid losing money with that ratio.
How it is calculated
Risk = |entry − stop|
Reward = |target − entry|
R = reward ÷ risk
Minimum win rate = 1 ÷ (1 + R)
FAQ
What is a good risk/reward ratio?
There is no magic number: a high ratio requires fewer wins, but the target is harder to reach. What matters is that your real win rate exceeds the minimum set by the ratio.
Does it include spread and commissions?
No. Costs reduce profits and increase losses, so in practice you need a slightly higher win rate than the calculated minimum.
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