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Risk Reward Calculator

Calculate your risk-to-reward ratio instantly. Enter your entry, stop loss, and take profit to see the break-even win rate for this trade.

Optional: calculate dollar amounts

Risk : Reward Ratio

1 : 2.00

Acceptable

Risk

$1,000.00

0.45% of price

Reward

$2,000.00

0.91% of price

RiskReward

Breakeven Win Rate

33.3%

The win rate at which this trade breaks even, before fees and slippage

Understanding Risk-Reward Ratio

The risk-to-reward ratio (R:R) compares how much you stand to lose versus how much you could gain on a trade. A 1:2 ratio means your potential profit is twice your potential loss.

Why It Matters

With a 1:2 R:R, the break-even win rate is about 33%. With a 1:3 R:R, it is 25%. This is the break-even win rate before fees and slippage; it does not tell you whether a trade will win.

Common R:R Guidelines

  • 1:1 - Minimum viable. You need >50% win rate to profit.
  • 1:1.5 - Acceptable. Breakeven at 40% win rate.
  • 1:2 - Good. Most professional traders aim for this minimum.
  • 1:3+ - Break-even win rate of 25% or less, before fees and slippage.

The Breakeven Formula

Breakeven Win Rate = 1 / (1 + R:R Ratio) x 100

At 1:2 R:R: 1 / (1 + 2) x 100 = 33.3%. You need to win just 1 out of every 3 trades.

Track Your R:R on Every Trade

TradeLog automatically calculates and tracks R:R for every trade. See your average R, best R, and equity curve in R-units across your entire trading history.

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