Risk/Reward Calculator
Know your edge before you click buy. Enter your entry, stop, and target to see your reward-to-risk ratio, the R-multiple you're risking for, and the win rate you'd need just to break even.
FAQ
What is a good risk/reward ratio?
Many traders aim for at least 2:1 — risking 1 to make 2. The higher your reward-to-risk, the lower the win rate you need to be profitable.
What is break-even win rate?
The win rate at which your wins exactly offset your losses for a given reward-to-risk. At 2:1 you only need to win about 33% of the time to break even.
What is an R-multiple?
R is your risk on a trade (entry to stop). A 2R winner makes twice what you risked; a −1R loss is a full stop-out. Journaling in R makes trades comparable regardless of size.