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Risk/Reward Ratio Calculator

Enter your entry, stop, and target — see your risk/reward ratio instantly, plus the minimum win rate you need for this setup to actually be profitable over the long run.

Risk / Reward Ratio
1 : 3.00
Risk (per unit)
$2.00
Reward (per unit)
$6.00
Breakeven Win Rate
25%

What is risk/reward ratio?

Risk/reward ratio compares how much you stand to lose on a trade (if stop hits) to how much you stand to make (if target hits). A 1:3 R:R means risking $1 to potentially make $3. A 1:1 R:R means you risk $1 to make $1.

The R:R is always defined by the setup before you enter. Once you're in, it's fixed — you don't get to re-negotiate with the market. This is why entry planning is the whole game.

Breakeven win rate — the number that matters most

Every R:R has a minimum win rate below which you lose money in the long run. This is called the breakeven win rate and it's calculated like this:

Breakeven Win Rate = 1 / (1 + R:R)

For a 1:3 setup, breakeven win rate = 1 / (1+3) = 25%. Hit winners more than 1 in 4 tries at 3R each and you're profitable. Hit less often than that and you bleed — no matter how big the winners feel.

For 1:1 you need 51%+ win rate. For 1:2 you need 34%+. For 1:5 you need only 17%. The lower your R:R, the more psychological certainty you need on every entry.

What R:R should you aim for?

Common R:R mistakes

See your real realized R:R across every trade

Most traders plan 1:3 and realize 1:1 because they cut winners short. Journali automatically tracks planned vs realized R on every trade and shows your actual expectancy by setup.

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