Risk to Reward Ratio Calculator
Test whether a trade is worth taking: the ratio, money at stake on both sides, and the win rate the plan needs.
Costs optional - your ratio after fees
Your win rate optional - your expectancy
You risk $100.00 to make $240.00.
Where your target must sit
Your plan says 1 : 2.40. Your fills say otherwise.
Connect your account and see your true average risk to reward across every real fill - the number this plan promises vs the one you actually take.
Show my real risk to rewardWhat the ratio tells you
Every planned trade has a price where you admit you were wrong and a price where you take profit. Risk to reward compares those distances. A 25 pip stop and a 60 pip target produce 1:2.4: every dollar at risk aims to make $2.40.
Connect the ratio to win rate
Breakeven win rate = 1 / (1 + reward per unit of risk). At 1:1 it is 50%, at 1:2 it is 33.3%, and at 1:3 it is 25%. Costs push the real requirement slightly higher.
A higher ratio is not automatically better
Farther targets are hit less often. The useful ratio is the one your actual win rate can support after spread and commission. With multiple targets, use the allocation-weighted blended ratio rather than the farthest headline target.