Risk/Reward Ratio Calculator
Check the risk/reward of any setup and the minimum win rate you need to break even. Enter your entry, stop, and target price.
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About the Risk/Reward Ratio Calculator
This tool measures the quality of a setup before you take it. It computes risk per unit (entry − stop) and reward per unit (target − entry), expresses them as a 1 : R ratio, and derives the minimum win rate you need to break even: risk ÷ (risk + reward). It is direction-aware, so longs and shorts are handled correctly — enter your entry, stop and target to see whether the payoff justifies the risk.
Frequently Asked Questions
How do I calculate the risk/reward ratio?
Risk per unit is the distance from entry to stop, and reward per unit is the distance from entry to target. The ratio is reward ÷ risk, shown as 1 : R. Enter your entry, stop and target prices above to get it instantly for a long or short trade.
What is a good risk/reward ratio?
Many traders aim for at least 1:2 — twice as much reward as risk — so they can be profitable even with a sub-50% win rate. The right ratio depends on your strategy's win rate, which the breakeven figure below makes explicit.
What win rate do I need to break even?
Breakeven win rate = risk ÷ (risk + reward). At 1:2 you only need to win about 33% of trades to break even before costs; at 1:1 you need over 50%. The calculator shows this percentage for your exact setup.