Risk of Ruin Calculator
Calculate the statistical probability of blowing your trading account based on your win rate and the percentage you risk per trade.
Use Risk of Ruin Calculator →Features
- ✓ Calculates probability of account ruin from win rate and risk % per trade
- ✓ Shows ruin probability across a range of risk percentages
- ✓ Helps you find the maximum safe risk level for your strategy
- ✓ Based on the statistical risk of ruin formula used by professional traders
- ✓ Free and instant — no sign-up required
Frequently Asked Questions
What is risk of ruin in trading?
Risk of ruin is the probability that a trader will lose their entire trading account (or a defined portion of it) given their historical win rate and the amount they risk per trade. Even profitable strategies can blow accounts if risk per trade is too high.
What win rate do I need to be profitable?
It depends entirely on your risk/reward ratio. With a 1:2 R:R you only need a 34% win rate to break even. With a 1:1 R:R you need more than 50%. Use the Risk/Reward Calculator alongside this tool for a full picture.
How much should I risk per trade?
Most risk management guidelines suggest 1-2% of your account per trade. At 1% risk with a 40% win rate, your risk of ruin approaches 0%. Risking 5% or more dramatically increases the chance of a catastrophic drawdown.
Free to use — no account or sign-up required.
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