Risk Reward Calculator
A risk reward ratio calculator compares how much you could lose with how much you could gain. Enter entry, stop-loss and take-profit. You get the ratio and the win rate you need just to break even.
Your ratio
How the risk to reward ratio is calculated
- Risk
- |Entry − Stop-loss|
- Reward
- |Take-profit − Entry|
- Risk:reward
- Reward ÷ Risk (shown as 1 : R)
- Break-even win rate
- 1 ÷ (1 + R) (before fees)
Example: entry 60,000, stop-loss 58,800, take-profit 63,600. Risk is 1,200 and reward is 3,600, so the ratio is 1 : 3. The break-even win rate is 1 ÷ 4 = 25%.
Risk to reward ratio and the win rate you need
| Risk : reward | Break-even win rate (before fees) |
|---|---|
| 1 : 0.5 | 66.7% |
| 1 : 1 | 50.0% |
| 1 : 2 | 33.3% |
| 1 : 3 | 25.0% |
| 1 : 4 | 20.0% |
A high ratio does not make a trade good. If price rarely reaches a far target, the win rate drops. And fees push the break-even point up: on a tight stop they matter a lot, as the position size calculator shows.
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FAQ
What is a good risk reward ratio?
There is no universal answer. A ratio only means something together with how often your trades win. At 1 : 2 you need to win 1 trade in 3 to break even before fees. At 1 : 1 you need half. Pick targets that price has a reasonable chance of reaching.
How do I calculate the risk to reward ratio?
Divide the take-profit distance by the stop-loss distance. With entry 60,000, stop-loss 58,800 and take-profit 63,600, that is 3,600 ÷ 1,200 = 3, so the ratio is 1 : 3. The calculator also works for shorts, where the stop is above entry.
Do fees change the risk reward ratio?
Yes. Fees add to your loss at the stop and reduce your profit at the target. In the example, a 0.1% fee per side turns a 1 : 3 ratio into roughly 1 : 2.64. The calculator shows the ratio after fees when you enter a fee.
What win rate do I need for a given ratio?
The break-even win rate is 1 ÷ (1 + ratio). At 1 : 3 it is 25%, at 1 : 2 it is 33.3%, and at 1 : 1 it is 50%. This ignores fees and slippage, so the true requirement is higher.
For planning and education only. Not financial advice.