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Risk reward calculator
Enter the entry, stop and target of a trade. See its risk-to-reward ratio, the win rate it needs to break even and where 1R, 2R and 3R targets sit.
- Read-only
- Never places trades
- No password
Long when the stop is below the entry, short when above.
Optional: what you lose at the stop. Shows the reward in money.
Runs in your browser: your numbers are not saved or sent.
What a ratio asks of your win rate
The bigger the reward against the risk, the fewer winners a trade needs to break even — before commission and swap:
| Risk : reward | Break-even win rate |
|---|---|
| 1 : 1 | 50 % |
| 1 : 1.5 | 40 % |
| 1 : 2 | 33.3 % |
| 1 : 3 | 25 % |
- Risk = |entry − stop|
- Reward = |target − entry|
- Ratio = reward ÷ risk
- Break-even win rate = 1 ÷ (1 + ratio)
Before you trust the ratio
- A planned ratio is not the one you get: a moved stop or an early exit changes it. Your journal’s average win ÷ average loss is the ratio you really trade.
- Spread and commission come out of every trade, so the real break-even win rate is a little higher than the table.
- A far target is hit less often. A 1:3 trade that reaches its target one time in five loses money.
Check the ratio you really trade: the win rate calculator →All free tools →
Questions
›What is a good risk to reward ratio?
Any ratio works if your win rate is above its break-even: 1:1 needs more than 50 % winners, 1:3 more than 25 %. Compare the ratio with the share of trades that actually reach the target.
›How do I calculate risk to reward?
Divide the distance from entry to target by the distance from entry to stop. Entry 1.0850, stop 1.0830, target 1.0910: 60 pips ÷ 20 pips = 1:3.
›What is R?
R is the amount you risk on a trade, the distance to the stop. A trade that wins twice the risk is +2R; one stopped out is −1R. Results in R compare trades of different sizes.
See the ratio you really trade
The journal shows every MT4/MT5 trade in R against its planned stop — and which mistakes cut your average win. Free for one account.
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