Trade Analysis
Risk/Reward Calculator
A risk-reward calculator compares potential profit to potential loss from entry, stop loss, and take profit. Traders use it to get the R:R ratio and the minimum win rate needed to break even — for example 2:1 R:R requires only a 33% win rate before costs.
Check whether a setup is worth taking by calculating R:R ratio and break-even win rate.
Frequently asked questions
What is a good risk-reward ratio for trading?
A 2:1 risk-reward ratio means potential profit is twice potential loss. At 2:1 you need roughly a 33% win rate to break even before commissions. Higher R:R allows lower win rates but often fewer qualifying setups.
How do I calculate break-even win rate from R:R?
Break-even win rate ≈ 1 ÷ (1 + R:R). At 2:1 R:R that is 1 ÷ 3 ≈ 33%. Add commissions and slippage when comparing to your actual win rate.
Plan with math. Validate with your journal.
Use this calculator to plan your trade, then log the result in TraderSetup to see if your execution matches the math — win rate, expectancy, drawdowns, and equity curve included.