Risk/Reward Ratio Calculator
Enter your entry, stop-loss and profit target. See your reward-to-risk ratio and the win rate it takes to break even — before you take the trade.
Free tool · No sign-up · Updated July 2026
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Setup quality
Estimates for planning only — verify against your broker. Nothing here is financial advice.
How the risk/reward ratio calculator works
The reward-to-risk ratio tells you how much you stand to make versus what you're risking. It's the fastest way to judge whether a setup is worth taking: a 3:1 setup only needs to win a quarter of the time to be profitable. This calculator also shows the exact break-even win rate for any ratio.
- Risk is the distance from your entry to your stop; reward is the distance from your entry to your target.
- The ratio is simply reward ÷ risk — a 2:1 means you aim to make twice what you risk.
- Break-even win rate = 1 ÷ (1 + ratio): a 2:1 setup breaks even at a 33% win rate, so anything above that is profitable.
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Learn the fundamentals
Go beyond the numbers. These free TradeOlogy Academy lessons cover the theory behind this calculator.
Risk Management Foundations
Why reward-to-risk only means something next to your win rate — and how the pros balance the two.
Read the lesson ↗ Academy lessonStop Placement Masterclass
Getting your stop right is what makes a risk/reward ratio honest instead of wishful.
Read the lesson ↗ Academy lessonPosition Sizing Deep Dive
Turn a good ratio into a correctly-sized position that risks a fixed slice of your account.
Read the lesson ↗Related calculators
Risk/Reward Ratio Calculator — FAQ
What is a good risk/reward ratio?
Many traders look for at least 2:1, meaning the target is twice as far as the stop. But a ratio is only useful next to your win rate — a 1.5:1 setup you win 60% of the time beats a 3:1 you win 25% of the time. Judge them together.
How does risk/reward relate to win rate?
They're two halves of the same equation. A higher reward-to-risk ratio lowers the win rate you need to be profitable. This calculator shows that break-even win rate directly, so you can see whether a setup is realistic for your strategy.
Should I always take high risk/reward trades?
Not blindly. Very high ratios often come from far-away targets that rarely get hit. The best edge is a ratio you can actually realise consistently — which is why journaling your real, closed trades matters more than any single setup's theoretical ratio.