Risk Reward Calculator

Trade Direction

Entry Price

Stop Loss Price

Target Price

Enter your trade levels and click Calculate

How to Use This Calculator

Select your trade direction (Long or Short).
Enter your planned entry price.
Enter your stop loss level — the price at which you'd exit for a loss.
Enter your profit target — the price at which you'd take profit.

The calculator shows your R:R ratio and the minimum win rate your strategy needs to be profitable at that ratio.

R:R Formula & Break-Even Win Rate

R:R Ratio = Reward ÷ Risk

Break-even Win Rate = Risk ÷ (Risk + Reward) × 100

A 2:1 R:R means you only need to win 33.3% of trades to break even. A 3:1 R:R needs only 25% wins. This is why professional traders focus on R:R ratio as much as win rate.

Frequently Asked Questions

What is a good risk to reward ratio?

A minimum of 2:1 is recommended for most strategies. Day traders often target 2:1 to 3:1. Swing traders may target 3:1 or higher to compensate for lower win rates.

Can I be profitable with a low win rate?

Yes. A strategy winning only 40% of trades can be very profitable with a 3:1 R:R. Win rate and R:R ratio work together — use the Expectancy Calculator to see the full picture.

Should I always target at least 2:1?

Not necessarily. Scalpers with 70–80% win rates can be profitable at 1:1 or 1.5:1. What matters is that your win rate exceeds the break-even win rate at your R:R.