THE NO JOB LIFESTYLEHow to use this calculator
Type your entry, where your stop loss sits and where you plan to take profit, plus the money you would lose if the stop is hit. It works for forex, gold, stocks or crypto, buy or sell.
The math: risk = distance from entry to stop. Reward = distance from entry to take profit. R:R = reward ÷ risk. Break even win rate = 1 ÷ (1 + R:R).
What is a good risk reward ratio?
Many traders look for at least 1:2, meaning the possible reward is twice the risk. The right number depends on how often your setups win.
How do I calculate risk reward ratio?
Measure the distance from entry to your stop loss and from entry to your take profit. Divide the take profit distance by the stop distance.
What win rate do I need with 1:2?
About 33.3%. With a 1:2 ratio you break even if one trade in three wins, before fees.
Does a higher ratio always mean better?
Not always. Far targets get hit less often, so a high ratio can come with a lower win rate.
Does this calculator save my numbers?
No. Everything runs in your browser and nothing you type is sent anywhere.
More free tools: quit your job calculator, forex compounding calculator, lot size calculator, pip value calculator, forex profit calculator, risk reward calculator, passive income goal calculator. New to the words? See the glossary.