Risk Reward Calculator: Calculate Your Trading Edge
Risk-to-reward ratio is one of the most important metrics in trading. It determines whether your strategy is profitable long-term — even before you look at your win rate. Our free RR Calculator shows you your edge in seconds.
Free · Instant results · No account required
Use the Free RR Calculator →What Is Risk-to-Reward Ratio?
The risk-to-reward ratio (R:R) compares how much you risk on a trade to how much you stand to gain. A 1:2 R:R means you risk 1R to make 2R — if you're right, you make twice what you risked.
This matters because it determines your break-even win rate — the minimum percentage of trades you need to win just to stay flat. A 1:2 R:R only requires a 33% win rate to break even. Many traders don't realize how powerful this is.
What the Calculator Shows You
R:R Ratios and Break-Even Win Rates
| R:R Ratio | Break-even Win Rate | What It Means |
|---|---|---|
| 1:1 | 50% | Need to win half your trades |
| 1:1.5 | 40% | Lose 6 in 10, still profitable |
| 1:2 | 33% | Win 1 in 3 and break even |
| 1:3 | 25% | Win 1 in 4 and break even |
| 1:5 | 17% | Very low win rate required |
Calculate Your Trading Edge Now
Free, instant, no login required. Know whether your setups are worth taking before you click.
Open the RR Calculator →