Risk & Reward Calculator
Enter your entry, stop loss and take profit to see the trade's reward-to-risk ratio, the pips and money at stake, and how often it has to win to break even.
Reward : risk (long)
1 : 2.00
Risk
25.0 pips
$125.00
Reward
50.0 pips
$250.00
Break-even win rate
33.3%
Wins needed to come out even
How it works
A ratio of 1 : 2 means the trade aims to make two times what it risks.
Break-even win rate = 1 ÷ (1 + ratio). At 1 : 2 you need to win just over a third of trades to break even, before costs.
The calculator works out whether the trade is a buy or a sell from where the take profit sits relative to the entry.
Learn more: Risk-reward ratio vs win rate, drawdowns and losing streaks and the multi-target calculator.
What is the risk-reward ratio?
The risk-reward ratio compares what a trade can lose with what it aims to make. Risk is the distance from entry to stop loss; reward is the distance from entry to take profit. A trade risking 20 pips to make 40 pips has a ratio of 1 : 2, so a win pays twice a loss.
How do you calculate the break-even win rate?
Divide 1 by 1 plus the reward-to-risk number. At 1 : 2 that is 1 ÷ 3, or 33.3%, so the trade plan breaks even if it wins one trade in three. At 1 : 1 you need 50%. Spreads and commission push the real break-even rate a little higher.
Worked example
- Buy EUR/USD at 1.1000 with a stop loss at 1.0980 (20 pips) and a take profit at 1.1050 (50 pips).
- Reward ÷ risk = 50 ÷ 20 = 2.5, so the ratio is 1 : 2.5.
- Break-even win rate = 1 ÷ (1 + 2.5) = 28.6%, before costs.