Risk/reward calculator
Enter a trade's entry, stop loss and take profit to see its risk/reward ratio and the win rate it needs to break even. It runs in your browser and nothing is stored.
Your numbers
Check that a trade is worth taking: how much you risk compared with what you can make.
You expect the price to rise.
Where you get in.
Below the entry.
Above the entry.
Your , if you know it. It lets the answer say whether the setup makes money on average.
+Show the amounts in money (optional)
The prices are pre-filled from the ECB reference rate for 2026-10-23. It is a daily rate for information only, so your broker's price will differ a little. Replace them with the current ones from your platform for an exact result.
Your answer
You risk 50 pips ($500.00) to try to make 100 pips ($1,000.00), a ratio of 1 : 2. You would need to win 33.3% of trades like this just to break even. At your 40% win rate, the average trade earns +0.2R (R is the amount you risk).
You aim to make 2 for every 1 you risk.
- What you risk
- 50 pips · $500.00
- What you can make
- 100 pips · $1,000.00
- Win rate needed to break even
- 33.3%
- Average per trade at 40% wins
- +0.2 R · +$100.00
R is one unit of risk. The average figure is over many trades at the win rate you entered; it ignores spreads, commissions and slippage and says nothing about any single trade.
+Show the working
- Risk = distance from entry to stop = |1.1193 − 1.1143| ÷ 0.0001 (one pip) = 50 pips.
- Reward = distance from entry to target = |1.1293 − 1.1193| ÷ 0.0001 = 100 pips.
- Ratio = reward ÷ risk = 100 ÷ 50 = 2, written 1 : 2.
- Break-even win rate = risk ÷ (risk + reward) = 50 ÷ (50 + 100) = 33.3%.
- Average result per trade = win rate × ratio − loss rate = 0.4 × 2 − 0.6 = +0.2R.
- Money: one pip for 1 lot is $10.00, so risk = 50 × $10.00 = $500.00 and reward = $1,000.00.
EUR/USD live price
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For information only, not financial advice. Trading carries a high risk of loss. Results depend on the values you enter and on your broker's contract specifications. Risk disclosure
What is risk/reward?
Every trade with a stop loss and a take profit has two distances: how far price can move against you before the stop closes the trade, and how far it must move in your favour to reach the target. The first is the risk and the second is the reward. Dividing the reward by the risk gives the risk/reward ratio, written as 1:2, 1:3 and so on.
How it is calculated
- Risk in pips = distance between the entry and the stop loss ÷ pip size.
- Reward in pips = distance between the entry and the take profit ÷ pip size.
- Ratio = reward ÷ risk.
- Break-even win rate = risk ÷ (risk + reward).
- Expected result per trade, in units of risk = win rate × ratio − (1 − win rate).
If you also enter a position size, the calculator turns the pips into money using the pip value for your account currency, the same way the pip value calculator on this site does.
Worked example
A long trade on EUR/USD enters at 1.0800 with a stop at 1.0750 and a target at 1.0900. The risk is 50 pips and the reward is 100 pips, so the ratio is 1:2. For one standard lot at $10 per pip that is $500 at risk against $1,000 of reward. The break-even win rate is 50 ÷ 150 = 33.3%. If about 40% of trades like this won, the average result would be 0.4 × 2 − 0.6 = +0.2 R, or $100 per trade, before costs.
Break-even win rate by ratio
| Risk/reward ratio | Break-even win rate | Meaning |
|---|---|---|
| 1 : 0.5 | 66.7% | Two in three trades must win |
| 1 : 1 | 50.0% | Half of the trades must win |
| 1 : 2 | 33.3% | One in three must win |
| 1 : 3 | 25.0% | One in four must win |
Limits to keep in mind
- Ratio and win rate go together. Moving a target further away raises the ratio but usually lowers the share of trades that reach it.
- Spreads, commissions and swap charges make the real risk slightly bigger and the real reward slightly smaller than the pips shown.
- A stop order can fill at a worse price than set, so the real loss can exceed the risk shown.
- The expected result is an average over many trades at an assumed win rate. It says nothing about the next trade, and your real win rate is not known in advance.
Frequently asked questions
+What is a risk/reward ratio?
It compares what you stand to gain with what you stand to lose on a trade. If your stop loss is 50 pips from the entry and your take profit is 100 pips away, the ratio is 1:2, meaning you aim to make two for every one you risk.
+What is a good risk/reward ratio?
There is no single good number, because it works together with how often trades win. A 1:1 ratio needs more than half of trades to win to come out ahead, while a 1:3 ratio needs only a little over a quarter. The break-even win rate in the result shows this for your own numbers.
+How is the break-even win rate calculated?
Divide the risk by the total of risk plus reward. With a 1:2 ratio that is 1 ÷ 3 = 33.3%, so about one trade in three has to hit its target for the wins to pay for the losses, before spreads and commissions.
+Why does the calculator say my stop or target is on the wrong side?
On a long (buy) trade the stop loss must be below the entry price and the take profit above it. On a short (sell) trade it is the other way round. Switching direction pre-fills prices that fit the new direction.
+Does a high ratio mean a better trade?
Not by itself. A distant target is hit less often than a near one, so a bigger ratio usually comes with a lower win rate. The ratio only tells you what the trade pays if it works and costs if it does not.