Free trader tool
Risk/Reward Ratio Calculator
Enter your entry, stop and target to get your risk/reward ratio, the risk and reward in pips and dollars, and the exact win rate you need to break even — across forex, indices, gold and crypto.
- Break-even win rate
- 33.3%
- Risk
- 50 points
- Reward
- 100 points
- Direction
- Long ▲
- Risk amount
- $100.00
- Potential reward
- $200.00
A good R:R is worthless without a repeatable setup.
Learn the CRT × Mitigation system that decides where your stops and targets actually belong.
Get the course →How to calculate risk/reward
Risk/reward compares what you stand to lose against what you stand to make on a single trade. Two distances decide it:
- Risk — the distance from your entry to your stop-loss.
- Reward — the distance from your entry to your take-profit.
Divide the reward by the risk and you have your ratio. A stop 20 pips away and a target 60 pips away is a 1:3 — you're risking 1 to make 3. The calculator measures both distances in your instrument's pips or points and does the division for you, so it works the same on EURUSD as it does on NAS100 or gold.
Why risk/reward matters — and the break-even win rate
The ratio is only half the picture. The number that actually decides whether you make money is the win rate it demands. At 1:1 you need to win more than half your trades just to break even. At 1:2 that drops to 33%. At 1:3, just 25%. That's the real power of a high reward-to-risk — it lets you be wrong more often than you're right and still come out ahead.
The trap is chasing ratios you can't actually hit. The only way to place stops and targets where they belong is to trade a defined structure — which is exactly what CRT (Candle Range Theory) and the CRT course teach: where the range breaks, where price is drawn, and where invalidation really sits.
Frequently asked questions
What is a good risk/reward ratio?
Most traders aim for at least 1:2 — a target twice as far as the stop. But a "good" ratio depends on your win rate: a 1:1 works if you win often, a 1:3 works even if you're right only a third of the time. What matters is that your win rate beats the break-even rate for your ratio.
How do I calculate risk/reward?
Divide the distance from your entry to your take-profit (the reward) by the distance from your entry to your stop-loss (the risk). If your risk is 25 pips and your reward is 75 pips, that's a 1:3 ratio.
What win rate do I need for a 1:2 risk/reward?
33.3%. At 1:2 you make twice what you risk, so winning a third of your trades breaks you even — anything above that is profit. The calculator shows the break-even win rate for any ratio you enter.
Is the risk/reward calculator free?
Yes — completely free, no signup, no limits.
More free tools
A ratio on paper proves nothing.
Learn where stops and targets actually belong — the CRT × Mitigation system, taught in order. Lifetime access.
Get the course →