Forex Risk-Reward Ratio Calculator
Enter your entry, stop-loss, and take-profit levels to get the risk-reward ratio and the win rate you'd need to break even.
- Direction
- Long
- Risk (distance to stop)
- 0.00500
- Reward (distance to target)
- 0.01000
- Risk-reward ratio
- 1 : 2.00
- Break-even win rate needed
- 33.3%
Risk-reward ratio compares how much you stand to lose against how much you stand to gain on a trade. A 1:2 ratio means the target is twice as far from entry as the stop — if the trade wins, the profit is double the size of the loss it would have taken if the stop had been hit instead.
Why it's not the same as win rate
Risk-reward and win rate are two different numbers that only matter together. A system that wins 40% of the time can still be profitable if the average winner is more than 1.5× the average loser; a system that wins 70% of the time can still lose money if the losers are large relative to the winners. The break-even win rate this calculator shows is the minimum win rate needed just to cover losses at that risk-reward ratio — anything above it, over enough trades, is where the edge comes from.
Using it before you enter
Plug in the entry, stop, and target from your setup before placing the trade, not after. If the ratio is poor (say, 1:0.5 on a strategy that doesn't win more than 70% of the time), that's a signal to either move the target, tighten the stop, or skip the setup — not something to fix by adjusting position size.