Risk / Reward Ratio Calculator + Break-Even Win Rate
Enter entry, stop and target to instantly see your risk-to-reward ratio, the win rate needed to break even, and the expected value of the trade.
You're risking $5.00 to make $15.00 per share.
Win above this and you're profitable long-term.
Profitable at this win rate.
R:R alone is not enough
Everyone obsesses over “at least 1:3 risk-to-reward.” But R:R only matters paired with your win rate. A 1:5 setup with a 10% win rate loses money. A 1:1.2 setup with 60% win rate prints.
The break-even formula
Break-even win rate = 1 ÷ (1 + R:R). A 1:2 trade breaks even at 33% win rate. A 1:1 trade breaks even at 50%. Anything you win above that line is pure profit.
Expected value
EV = (win rate × reward) − ((1 − win rate) × risk). Positive EV = profitable system over time. Negative EV = no matter how hyped the setup, you'll lose money taking it.
How to use the Risk / Reward Calculator
Takes about a minute. No signup, no download, your data stays in your browser.
- 1Open the tool. Scroll up to the Risk / Reward Calculator above — it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the Risk / Reward Calculator.
What is a risk-reward ratio?
It compares how much you stand to lose to how much you stand to gain on a trade. A 1:2 ratio means you risk 1 unit to make 2.
What win rate do I need to break even?
It depends on your risk-reward. At 1:1 you need to win 50% of the time; at 1:2 you need only ~33%; at 1:3, ~25%. Break-even win rate = 1 / (1 + reward/risk).
What is the expected value of a trade?
Expected value = (win rate × average win) − (loss rate × average loss). A positive expected value means the setup is profitable over many trades, even if individual trades lose.
What is a good risk-reward ratio?
Many traders look for at least 1:2, so a modest win rate still yields positive expectancy. The “best” ratio is whatever pairs with your actual win rate to stay positive.
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