Risk/Reward Calculator
Calculate your risk/reward ratio and breakeven win rate
Trade Parameters
Your planned entry price
Exit price if trade goes against you
Your profit target
Number of shares to trade
Analysis Results
Understanding Risk/Reward Ratios
1:1 - You risk the same as you stand to gain (50% win rate to break even)
1:2 - You can make twice what you risk (33% win rate to break even)
1:3 - You can make three times your risk (25% win rate to break even)
Professional traders typically aim for minimum 1:2 risk/reward ratios.
Why R:R Matters
A favorable risk/reward ratio allows you to be profitable even with a lower win rate. With a 1:3 ratio, you only need to win 25% of your trades to break even, giving you a significant edge in the markets.
Learn Risk Management →Position Sizing Tips
Always calculate your position size based on your risk tolerance, not potential profit. Use our position size calculator to determine the right number of shares based on your account risk parameters.
Use Position Size Calculator →Win Rate vs Risk/Reward Table
| Win Rate | 1:1 R:R | 1:1.5 R:R | 1:2 R:R | 1:3 R:R |
|---|---|---|---|---|
| 30% | -40% | -25% | -10% | +20% |
| 40% | -20% | 0% | +20% | +60% |
| 50% | 0% | +25% | +50% | +100% |
| 60% | +20% | +50% | +80% | +140% |
Expected return over 100 trades