Risk/reward calculator (R:R)
Calculate a trade's risk/reward ratio, the win rate needed to break even and the expectancy.
How to useTrade risk vs. reward
Educational tool, not investment advice.
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Risk/reward calculator (R:R): what it is for
Enter entry, stop, target and your win rate. The calculator shows the risk/reward ratio, the win rate needed to break even (1 ÷ (1 + R:R)) and the expectancy per trade, in money and in multiples of R.
Educational tool: the calculations are estimates and not investment advice.
How to use
- Enter entry, stop and target.
- Enter your win rate.
- See the R:R and expectancy.
When to use it
- Check whether a trade is worth the risk.
- Test the viability of a strategy.
- Compare different setups.
Frequently asked questions
What is the risk/reward ratio?
It is how much you can gain up to the target divided by how much you can lose down to the stop. An R:R of 3 means winning $3 for every $1 risked.
What win rate do I need to break even?
Break-even rate = 1 ÷ (1 + R:R). With an R:R of 2, you only need to win 33.3% of trades to not lose money, before costs.
What is expectancy?
It is the average result expected per trade: (win rate × gain) − (loss rate × loss). If positive, the method has a statistical edge, as long as the win rate you enter is realistic.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.