Risk / reward calculator
Enter your entry, stop and target. See your R:R, the break-even win rate and whether the trade is worth taking.
Your levels
Risk / reward
- Risk (entry to stop)20
- Reward (entry to target)40
- Win rate needed to break even33.3%
- Expected result per trade+0.35R
Why risk/reward matters more than win rate
With a 1:2 risk/reward you only need to win 1 trade in 3 to break even. With 1:1 you need to win more than half. Good traders often win less than 50% of the time and still grow, because their winners are bigger than their losers.
Expected result = (win rate × reward) − (loss rate × risk), measured in R (1R = what you lose when the stop is hit). Positive means the setup makes money over many trades, if your win rate is real.
Quick answers
What is a good risk/reward ratio?
Many traders aim for at least 1:2, so one winner covers two losers. You then only need to win more than 33% of trades to break even.
How do I calculate the break-even win rate?
Break-even win rate = 1 ÷ (1 + R), where R is reward divided by risk. At 1:2 it's 33.3%.
Tools help. A process wins.
The free course teaches price action, risk, entries and exits, in order. Six PDF cheat sheets come with it. No card. Then watch me trade it live.
For education only, not financial advice. Check contract specs with your broker; trading involves substantial risk of loss.