Free trading tool

Risk/Reward Calculator

Before you enter a trade, check what you stand to gain compared with what you stand to lose — and how often you need to be right for the plan to make sense.

Used to convert the price distance into pips.
To see the expected result per trade.
Risk / reward
DirectionBUY
Risk50.0 pips
Reward100.0 pips
Risk : Reward1 : 2.00
Break-even win rate33.3%
Expected result at 40% wins+0.20 R per trade

"R" = the amount you risk on one trade. A positive number means that win rate would be profitable over many trades before spreads and commissions — and only if your real win rate matches. Prices shown to 5 decimals.

How it works

Risk is the distance from entry to your stop-loss; reward is the distance from entry to your take-profit. The risk-to-reward ratio is reward ÷ risk. A trade risking 50 pips to make 100 pips is 1 : 2.

The break-even win rate is 1 ÷ (1 + R:R). At 1 : 2 you need to win about 33% of trades just to break even (before costs); at 1 : 1 you need 50%. The optional expectancy line shows the average result per trade in "R" units for the win rate you enter: win% × R:R − loss%.

A high R:R is not automatically good — a distant target may rarely be reached. Combine this with honest records of your real win rate.

Frequently asked questions

What is a good risk-to-reward ratio?
It depends on your strategy’s win rate. Strategies that win less often usually need a higher ratio (1:2 or more); high win-rate strategies can work with a lower one. What matters is the combination.
How is the direction detected?
If your stop is below entry and target above, it is a BUY. If the stop is above entry and the target below, it is a SELL. Any other combination is flagged as an error.
Why do I choose an instrument?
To convert the price distance into pips — yen pairs and gold use a different pip size from most other pairs.
Does it account for spread?
No. Spread and commission effectively shrink your reward and widen your risk, so real results will be slightly worse than the calculator shows.

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Disclaimer: these calculators are for education and planning only and are not financial advice. Results are estimates — real pip values, spreads, commissions and swaps differ by broker. Trading leveraged products involves a high risk of loss. Read the full risk disclosure.