Risk Reward Calculator — Free R:R Ratio Calculator for Trading

Using the risk reward calculator is straightforward. Pick the currency pair (it sets the pip size), then enter three prices: your entry price (where you plan to enter the trade), your stop loss (where you will exit if the trade goes against you), and your take profit (your target price).

The calculator automatically determines whether you are going long or short based on whether your take profit is above or below your entry price; the stop loss goes on the other side of the entry (a stop on the take profit's side is flagged at the field). It then computes the pip distance to your stop loss and take profit, calculates the R:R ratio, and shows the minimum win rate you need to break even with this setup.

Optionally, enter your account size and the percentage you risk per trade (typically 1–2%) to see the exact dollar amounts at risk and the potential profit in your account currency.

The core formulas are simple:

• Risk (pips) = |Entry Price − Stop Loss| ÷ Pip Size
• Reward (pips) = |Take Profit − Entry Price| ÷ Pip Size
• (Pip Size is 0.0001 for most pairs — a × 10,000 conversion — and 0.01 for yen pairs such as USD/JPY, a × 100 conversion; pick the pair in the calculator. The ratio itself is the same for any market — stocks, crypto or yen pairs — because it only compares two distances.)
• R:R Ratio = Reward ÷ Risk
• Break-even Win Rate = 1 ÷ (1 + R:R Ratio) × 100
• Dollar Risk = Account Size × Risk %
• Potential Profit ($) = Dollar Risk × R:R Ratio

For example, if your R:R ratio is 1:2, you only need to win 33.3% of your trades to break even — meaning you can lose twice as often as you win and still be profitable.

Example 1 — EUR/USD Long Trade

• Entry: 1.0850
• Stop Loss: 1.0800 (50 pips risk)
• Take Profit: 1.0950 (100 pips reward)
• R:R = 1:2 — Break-even win rate: 33.3%

With a $10,000 account at 1% risk: Dollar risk = $100, Potential profit = $200.

Example 2 — GBP/USD Short Trade

• Entry: 1.2650
• Stop Loss: 1.2700 (50 pips risk)
• Take Profit: 1.2500 (150 pips reward)
• R:R = 1:3 — Break-even win rate: 25%

With a $10,000 account at 1% risk: Dollar risk = $100, Potential profit = $300.

Example 3 — Scaling Out at Three Targets

Many traders close the position in parts. Take the EUR/USD long from Example 1 (entry 1.0850, stop 1.0800, $100 at risk) and split the exit:

• 50% at 1.0900 (1R) = $50
• 30% at 1.0950 (2R) = $60
• 20% at 1.1000 (3R) = $60
• Weighted R:R = 1:1.7 — $170 if every target is hit; break-even win rate 37%

Scaling out lowers the payoff compared with holding everything to 1:2 or 1:3, but the first partial is closer to entry and hit more often. Use the calculator's multiple take-profit mode to see whether that trade-off still leaves a positive expectancy for your win rate. Give each target its share of the position; the calculator shows how much is allocated and warns when the shares do not add up to 100%, because an unassigned part has no target.

Win Rate and R:R Belong Together

A ratio on its own says nothing about profitability. Expectancy per trade, in units of risk, is Win Rate × Reward − Loss Rate × 1. A strategy that wins 40% of the time at 1:2 makes 0.4 × 2 − 0.6 × 1 = +0.2R per trade — $20 on average for every $100 risked. The same 40% win rate at 1:1 loses 0.2R per trade. Before trusting a high R:R setup, check how often similar setups actually reached their target in your journal or backtest.

What R:R Ratio Should You Target?

Most professional traders target a minimum of 1:1.5 or 1:2. At 1:2, you only need to win 33% of your trades to be profitable. At 1:1, you need a 50%+ win rate just to break even after spreads and commissions. Aim for setups where the potential reward is at least 1.5× the risk.