Risk/Reward Ratio Calculator

Calculate your exact R:R ratio, target price and potential profit or loss before entering any trade. Trade only when the math is in your favour.

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Features

Frequently Asked Questions

What is a good risk/reward ratio?

Most professional traders aim for a minimum of 1:2 — risking 1 unit to make 2. At a 1:2 R:R you only need to be right 34% of the time to be profitable. A 1:3 ratio means you can be wrong on more than half your trades and still profit.

How is R:R calculated?

Divide the potential profit (distance from entry to target) by the potential loss (distance from entry to stop-loss). For example: entry at 1.1000, stop at 1.0950, target at 1.1100 → risk = 50 pips, reward = 100 pips → R:R = 1:2.

Should I only take trades with a certain R:R?

It depends on your win rate. Use the Risk of Ruin Calculator to find the combination of win rate and R:R that keeps your account safe. Generally, a 1:2 R:R or better with a 40%+ win rate is a solid starting point.

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