Risk/Reward Ratio Calculator
Evaluate trade setups by comparing potential profit to potential loss using the risk-to-reward ratio.
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Results
Risk (per unit)$5.00
Reward (per unit)$15.00
Risk/Reward Ratio1 : 3.00
Required Win Rate to Break Even25.0%
FAQ
What is a good risk/reward ratio?›
A risk/reward ratio of at least 1:2 is generally considered favorable, meaning your potential profit is at least twice your potential loss. Some traders aim for 1:3 or higher depending on their strategy and win rate.
How does risk/reward ratio relate to win rate?›
A higher risk/reward ratio lets you be profitable with a lower win rate. For example, with a 1:3 ratio you only need to win about 25% of trades to break even, while a 1:1 ratio requires a 50% win rate.