Risk/Reward Calculator
Evaluate your trade setup before you enter. Know your ratio and breakeven win rate before placing any order.
Risk/Reward Calculator
Enter your entry, stop loss and take profit to analyse the trade setup
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This tool is for informational and educational purposes only. Results are estimates. Trading forex carries significant risk. Never trade with money you cannot afford to lose.
What is the Risk/Reward Calculator?
The Risk/Reward Calculator turns an entry, stop loss and take-profit into the ratio that governs long-term profitability: how many units of reward you are chasing per unit of risk. It also tells you the minimum win rate needed to break even on a strategy with that ratio, so you can judge whether a setup is worth taking before clicking buy or sell.
How to use it
- Enter the entry price for the trade.
- Enter the stop loss and take profit prices.
- Enter the lot size you intend to use.
- Read the displayed R:R ratio, the cash at risk and reward, and the break-even win rate.
Worked example
You go long EUR/USD at 1.0850, stop loss at 1.0830 (20 pips), take profit at 1.0890 (40 pips), with a 1 lot position.
- Risk: 20 pips × $10 = $200
- Reward: 40 pips × $10 = $400
- R:R = 1:2
- Break-even win rate = 1 / (1 + 2) = 33.3%
With a 1:2 setup you only need to be right one in three trades to come out ahead, before costs.
Frequently asked questions
What R:R should I aim for?
There is no universal answer, but 1:1.5 or better is a common floor for swing trading. Day traders often accept lower ratios (1:1, sometimes 1:0.8) but compensate with a higher hit rate. The combination of R:R and win rate is what matters, not either number on its own.
How does break-even win rate work?
If your average winner is N times your average loser, you break even at 1/(1+N) win rate. The calculator does this automatically. A 1:3 strategy is profitable above a 25% win rate; a 1:1 strategy needs 50%.
Does the calculator include spread and commission?
No. R:R here is based purely on price targets. To see the true cost-adjusted break-even, combine this with the Break-even Calculator, which converts spread and commission into pips.
Can I use it for short trades?
Yes. The calculator treats the trade direction by the relative position of stop and target to the entry, so short trades work identically. The R:R ratio is the same whether you are long or short.
Prefer your phone? The Risk/Reward Calculator is also available as Risk / Reward inside Lot Size Calculator GT, our free Android app bundling 8 forex calculators. Works fully offline.
