Risk/reward calculator
Compare what you risk with what you aim to gain, and see the win rate you would need to break even.
Risk/reward ratio (buy)
1 : 2
- Risk (price distance)
- 0.0025
- Reward (price distance)
- 0.005
- Break-even win rate
- 33.3%
Before costs such as spread and commission. A good ratio does not make a trade likely to win; it only describes the payoff if it does.
Results are estimates for learning purposes. Your broker's contract sizes, spreads and fees may differ. Not financial advice.
What the risk/reward ratio means
If you risk 25 pips to aim for 50 pips, your ratio is 1:2. You lose 1 unit when wrong and gain 2 units when right.
Break-even win rate
Break-even win rate = 1 ÷ (1 + ratio). At 1:2 you need to win about 33% of trades to break even, before costs. At 1:1 you need 50%. This is why traders look at both the ratio and how often a setup has worked in their own journal.
Learn how to use this in your trading plan
The free course explains risk management step by step, with practice tasks and Q&A on Telegram.