Risk/Reward Calculator
Calculate your risk-to-reward ratio by entering entry price, stop loss, and take profit levels.
Number of shares, contracts, or units
Risk/Reward Ratio
0.00:1Risk
$0.00Reward
$0.00Breakeven Win Rate by R:R
Breakeven Win Rate by R:R
The win rate you need to break even at different R:R ratios
Real Examples
How R:R affects your trading edge
Common Mistakes
#1: R:R Without Win Rate
What traders do
Chasing high R:R ratios without considering your actual win rate
The consequence
What to do instead
R:R and win rate are two sides of the same coin. Evaluate them together.
#2: Take Profit Too Far Away
What traders do
Setting an unrealistic take profit just to achieve a high R:R
The consequence
Price hits your stop 30 times and your TP 10 times — your actual win rate is 25%, exactly at breakeven for 1:3 R:R.
What to do instead
Set take profit at technical levels, not at ratio targets.
#3: Stop Loss Too Tight
What traders do
Shrinking your stop loss to 10 pips just to get a better R:R
The consequence
Normal market noise takes you out repeatedly. Five false exits at 10 pips each = 50 pips lost. One 30-pip winner can't recover that.
What to do instead
Place your stop at technical levels, not at a number that makes the ratio look good.