Risk Reward Calculator
Compute the risk-reward ratio and break-even win rate of a trade.
Why the ratio matters
A good risk-reward ratio lets you be profitable even if you are wrong often. At 1:3, you can lose 70% of trades and still make money. Most traders demand at least 1:2 before entering.
Break-even win rate
Break-even win rate = 1 ÷ (1 + reward/risk). At 1:2 you need to win just 33% of the time to break even.
Frequently asked questions
What ratio is good?
Aim for at least 1:2. Combined with a decent win rate, a 1:2 or 1:3 setup is the backbone of profitable trading.