Risk/Reward Ratio Calculator
Calculate your risk-to-reward ratio, breakeven win rate, and expected value from entry, stop loss, and take profit levels.
Risk/Reward Analysis
Risk/Reward Ratio (R:R) compares the potential loss to the potential gain on a trade.
Risk = |Entry Price − Stop Loss Price|
Reward = |Take Profit Price − Entry Price|
R:R Ratio = 1 : (Reward / Risk)
Breakeven Win Rate tells you the minimum win rate needed to not lose money:
Breakeven Win Rate = 1 / (1 + R:R) × 100
Common R:R targets by style:
- Scalping: 1:1 to 1:1.5 (needs >50% win rate)
- Day Trading: 1:2 to 1:3 (needs >33% win rate)
- Swing Trading: 1:3 to 1:5 (needs >20% win rate)
- Position Trading: 1:5+ (needs >17% win rate)
Key insight: A 1:3 R:R means you only need to win 25% of trades to break even. Most profitable traders combine a decent win rate with favorable R:R.