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Risk-to-Reward Calculator

Evaluate trade expectancy before entry. Calculate risk-to-reward ratios (1:2, 1:3), break-even probability requirements, and multi-target scale-outs.

Trade Setup Prices

$
Quick Auto-Fill Target Ratio:
Expectancy EvaluationSub-Optimal
Risk to Reward Ratio
1 : 0.00
Reward is 0.00x the initial risk
Break-Even Win Rate Required:100.0%
Potential Profit at Target:+$0.00
Distance to Stop Loss:0.00 pts
Distance to Target:0.00 pts
Scale-Out Milestones
1.0R (Risk-Free):0.00
2.0R (Standard TP):0.00
3.0R (Runner Target):0.00
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Risk-to-Reward & Break-Even Win Rate Math

The Risk-to-Reward (R:R) ratio measures the expected return for every unit of capital risked. The higher your R:R ratio, the lower your required win rate to achieve profitability.

Formula Definition:
Risk_to_Reward = (Target_Price - Entry_Price) / (Entry_Price - Stop_Loss_Price) Break_Even_Win_Rate = ( 1 / (1 + RR_Ratio) ) * 100%

Trader Risk Best Practices

  • check_circleAt 1:2 R:R, you only need a 33.3% win rate to break even.
  • check_circleAt 1:3 R:R, you only need a 25.0% win rate to break even.
  • check_circleAvoid taking trades with less than a 1:1.5 R:R in discretionary trading to leave room for slippage and fees.
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