Try 7 days free

Home / Calculators / Risk/reward

Calculator · No sign-up

Risk/reward (R:R) calculator

How much you can make for every unit you risk, and how often you need to be right.

Direction

Calculations run in your browser. The data you enter is not stored.

Risk/reward ratio2:1
Win rate to break even
33.3%
Risk (1R)
0.0020
Target profit
0.0040

Not counting commissions, spread or slippage.

How it's calculated

Buy: R:R = (take profit − entry) ÷ (entry − stop loss)
Sell: the signs are reversed.
Break-even win rate = 1 ÷ (1 + R:R)

Example · buyEntry at 1.1000, stop at 1.0980 (20 pips of risk), take profit at 1.1040 (40 pips of profit). R:R = 40 ÷ 20 = 2:1. You need to be right more than 33.3% of the time not to lose money (not counting commissions or spread).

Frequently asked questions

What is a good risk/reward ratio?

There isn't a single one: a low R:R can work with a high win rate, and vice versa. What matters is the combination of both.

What does 1R mean?

It's what you risk on a trade. If you make 2R, you made twice what you were risking.

Why don't the numbers add up even though my R:R is good?

Commissions, spread and slippage reduce the real profit. That's why it's worth measuring the R you actually got on your real trades, not just the planned one.

How do I know my real win rate?

By recording all your trades. A journal calculates it by strategy, instrument and session.

Other calculators

Measure every trade for real.

With Fibonacci, the risk, R:R and drawdown of each account are calculated automatically from your real trades. Connect MT4, MT5 or cTrader in read-only mode.

Try 7 days freeCard required. After the 7-day trial, from USD 50/month unless you cancel before it ends.