Risk Reward Calculator
Calculate the risk-reward ratio for any trade before entering. Know exactly how much you stand to gain versus what you're risking.
Calculator
Risk (Pips)
0.00500
Reward (Pips)
0.01000
R:R Ratio
2.00
Required Win Rate
33.3%
How It Works
The risk-reward ratio compares the potential profit of a trade to its potential loss. A ratio of 1:3 means you risk $1 to make $3 — a favorable setup.
Successful traders consistently take trades with favorable risk-reward ratios. Even with a win rate below 50%, favorable ratios can make your trading profitable overall.
Enter your entry price, stop loss, and take profit levels to calculate your risk in pips, reward in pips, and the R:R ratio. The required win rate shows the minimum percentage of winning trades needed for breakeven.
The Formula
Risk (pips) = Entry Price − Stop Loss, Reward (pips) = Take Profit − Entry Price, R:R Ratio = Reward / Risk, Required Win Rate = 1 / (1 + R:R Ratio) × 100For long positions. For short positions, reverse the subtractions. A higher R:R ratio means more potential profit relative to risk.
Example
Scenario: You enter a long trade on EUR/USD at 1.1000, with a stop loss at 1.0950 and take profit at 1.1100.
Calculation: Risk = 1.1000 − 1.0950 = 50 pips. Reward = 1.1100 − 1.1000 = 100 pips. R:R = 100/50 = 2.00.
Result: You risk 50 pips to gain 100 pips (1:2 ratio). You only need a 33.3% win rate to break even.