Risk reward calculator
The risk-reward ratio compares how much a trade can make to how much it can lose: distance to target divided by distance to stop. Entry 300, stop 280 and target 342 give 42 ÷ 20 = 2.1R. At 2.1R you break even if you win about 32% of the time, before charges.
Risk reward calculator
- Reward : risk
- 2.1
- Breakeven win rate
- 32.26%
- Risk per unit
- 20
- Reward per unit
- 42
Check the inputs: some values are missing or out of range.
How it is calculated
Risk = |entry − stop|Reward = |target − entry|R:R = reward ÷ riskBreakeven win rate = 1 ÷ (1 + R:R)
Worked example
Risk 20 and reward 42 give 2.1R. Breakeven win rate = 1 ÷ 3.1 = 32.3%. Win more often than that (after costs) and the setup has a positive expectancy.
Educational maths only. Not investment advice.
Questions
Is a higher R:R always better?
Not by itself. Far targets are hit less often. What matters is win rate and R:R together, which is what the expectancy calculator combines.
Do charges change the breakeven?
Yes. Costs raise the win rate you need. Use the breakeven win rate calculator with a cost per trade.
Related tools
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