Risk reward ratio calculator
A risk-to-reward ratio only means something next to the win rate it needs. This calculator shows both.
- Break-even win rate
- 25.0%
- Risk
- 10 pts
- Reward
- 30 pts
- Direction
- Long
Enter prices in whatever the instrument quotes. Direction is inferred from where the stop sits, so it works for longs and shorts.
The break-even win rate is the key output. Above it the setup makes money over enough trades; below it, more trades lose more.
Break-even win rate for each ratio
A 3:1 setup won 20% of the time loses money. A 0.5:1 setup won 80% of the time makes money, which is why scalping strategies depend on hit rate.
| Risk : reward | Break-even win rate |
|---|---|
| 1 : 3 (risking 3 to make 1) | 75.0% |
| 1 : 2 | 66.7% |
| 1 : 1 | 50.0% |
| 2 : 1 | 33.3% |
| 3 : 1 | 25.0% |
| 5 : 1 | 16.7% |
Before commission and slippage, which push every break-even rate higher.
Risk reward formula
An entry at 5800 with a stop at 5790 and a target at 5830 risks 10 to make 30: a 3:1 ratio that breaks even at 25%.
risk = |entry − stop|
reward = |target − entry|
ratio = reward ÷ risk
break-even rate = 1 ÷ (1 + ratio)Why real risk reward comes out worse than planned
Measure both from your own fills. Slippage in futures trading covers where it clusters.
- Stops slip
- A triggered stop becomes a market order. A 10-point stop filled 2 points late loses 12, and 3:1 becomes 2.5:1.
- Targets may not fill
- A resting limit at the target misses if price turns a tick early.
From risk reward to position size
Pick the stop from the chart first. Choosing a size first tends to put stops where the arithmetic wants them.
- 01
Check the ratio
Entry, stop and target above give the ratio and the win rate it needs.
- 02
Check the edge
Confirm the setup has positive expectancy with the expectancy calculator.
- 03
Size from the stop
Feed the stop distance into the position size calculator.
Common questions
Short answers to what traders ask first. Anything else, the Help Center has it.
How do you calculate risk to reward?
Divide the distance from entry to target by the distance from entry to stop. An entry at 5800 with a stop at 5790 and a target at 5830 risks 10 to make 30: a 3:1 ratio.
What is a good risk to reward ratio?
It depends on win rate. Each ratio has a break-even hit rate (25% at 3:1, 50% at 1:1, 66.7% at 1:2), and what matters is whether you beat yours.
What win rate do I need for a 2:1 risk reward?
More than 33.3% to break even, and more than that after costs. The formula is 1 ÷ (1 + ratio).
Is a 1:1 risk reward bad?
No. It needs a win rate above 50%, which many mean-reversion and scalping strategies reach.
Why is my real risk to reward worse than planned?
Stops slip and targets sometimes don't fill. Measure both from your own fills.
Is my data sent anywhere?
No. The calculation happens in your browser and nothing is saved or sent.
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