Risk reward ratio calculator

Enter entry, stop loss and take profit to get the risk to reward ratio, the win rate you need to break even, and expectancy. Free, browser-only, long or short.

Entry priceStop loss priceBelow entry for a long, above entry for a short.Take profit priceAbove entry for a long, below entry for a short.Your win rate (%)From a real, long enough sample. Used for the expectancy only.Amount risked per tradeOptional, in your account currency.

Trade directionLong (buy)

Risk to reward1 : 2.00Risking 5 to make 10 in price

Break-even win rate33.33%Below this win rate the plan loses money before costs.

Expectancy per trade0.20 RAbout 20.00 per trade on 100.00 risked, before spread, commission and slippage

Profit if the target is hit200.00Loss if the stop is hit: 100.00

How the numbers are worked out

The risk is the distance from your entry to your stop loss, and the reward is the distance from your entry to your take profit. The risk to reward ratio is reward divided by risk, so a 5 point stop and a 10 point target is 1 : 2. The calculator reads long or short from the prices you enter.

The break-even win rate

For a ratio of 1 : R, a strategy breaks even when it wins 1 / (1 + R) of its trades before costs: 50% at 1 : 1, 33.3% at 1 : 2 and 25% at 1 : 3. A wider target lowers the win rate you need, and a tighter one raises it. Spread, commission and slippage push the true break-even higher, which matters most for small targets such as scalping.

Expectancy

Expectancy is the average result of a trade in units of the amount you risk (R): win rate x ratio, minus the loss rate. At a 40% win rate and 1 : 3, that is 0.4 x 3 - 0.6 = 0.6 R per trade. It is only as good as the win rate you put in, and a win rate from a few dozen trades is weak evidence.

Using it with an Expert Advisor

The MetaTrader 5 strategy tester report lists the average profit trade and average loss trade, which give the EA's real reward to risk, and the share of profit trades, which is its win rate. Compare those with the break-even win rate above: a high win rate with a poor ratio can still lose, and a low win rate with a good ratio can still win. Neither says the EA will repeat that result on a live account.

This calculator is general education, not financial advice. Results are estimates that ignore spread, commission, slippage and swap, and trading carries a high level of risk.