Risk/reward calculator
Enter a trade's entry, stop loss and take profit to see its risk/reward ratio, the win rate it needs to break even, and its expectancy at the win rate you expect. Direction is detected from the prices.
Risk : reward
1 : 2.00
Buy detected from the take profit.
- Risk (entry to stop)
- 0.0050
- Reward (entry to target)
- 0.0100
- Break-even win rate
- 33.3%
- Expectancy at 40% wins
- +0.20 R per trade
Spread, commission and slippage reduce the real ratio, most on tight stops.
Calculated in your browser. Nothing is sent or stored. Results are estimates; check your broker's symbol specification.
The formulas
R:R = |take profit − entry| ÷ |entry − stop loss|
break-even win rate = 1 ÷ (1 + R:R)
expectancy (R) = win rate × R:R − (1 − win rate)
Worked example
EURUSD buy
- Entry 1.1000, stop 1.0950 (50 pips), target 1.1100 (100 pips).
- R:R = 100 ÷ 50 = 2.0.
- Break-even win rate = 1 ÷ 3 = 33.3%.
- At a 40% win rate: 0.4 × 2 − 0.6 = +0.2R per trade.
Reading the result
A high ratio isn't automatically good: distant targets are hit less often. A low ratio isn't automatically bad: some strategies win often with close targets. The ratio and the win rate have to be judged together, and the expectancy combines them.
Costs shift the real ratio. A one-pip spread on a 10-pip stop and 10-pip target turns 1:1 into roughly 11:9. See risk/reward basics.
Frequently asked questions
What is a good risk/reward ratio?
There is no universal number. What matters is that your win rate is comfortably above the break-even win rate for your ratio, after spread and commission.
How does it know if the trade is a buy or a sell?
From the take profit: above the entry means a buy, below means a sell. The stop loss must be on the other side of the entry, or the calculator shows an error.
What does expectancy in R mean?
The average result per trade measured in units of risk. +0.2R means that, on average, each trade makes 20% of what it risks, over many trades.
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Risk warning. Trading forex, CFDs, metals, indices and crypto on margin carries a high risk of loss and is not suitable for everyone. Copying trades does not reduce market risk: a copied loss is a real loss. Examples on this page are illustrations, not advice or a forecast. CopyTraderTool is software; it does not give investment advice or manage funds. See the Risk Disclosure.