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Risk/Reward Calculator

Calculate the risk-to-reward ratio of a trade and the win rate you need to break even, from your entry, stop-loss and take-profit.

Risk (per unit)0
Reward (per unit)0
Risk : Reward—
Break-even win rate—

You need to win more than the break-even rate for this R:R to be profitable.

How to use the risk/reward calculator

The risk-to-reward ratio compares what a trade can lose at its stop-loss with what it can make at its take-profit. It does not say whether a trade will win; it says how often it has to win to be worth taking.

Enter your entry, stop-loss and take-profit. The calculator shows the risk and reward per coin, the ratio, and the break-even win rate: the share of trades that must hit the target for the strategy to make zero before costs.

A higher ratio lowers the win rate you need, but targets further away are reached less often. Judge a setup on both numbers together, never on the ratio alone.

The formula

  • Risk per coin = |entry − stop-loss|
  • Reward per coin = |take-profit − entry|
  • Risk : Reward = 1 : (reward ÷ risk)
  • Break-even win rate = 100 ÷ (1 + reward ÷ risk) %

Worked example

Entry 65,000, stop-loss 64,000, take-profit 67,000.

  1. Risk = 65,000 − 64,000 = 1,000 per coin.
  2. Reward = 67,000 − 65,000 = 2,000 per coin.
  3. Ratio = 2,000 ÷ 1,000, so 1 : 2.
  4. Break-even win rate = 100 ÷ (1 + 2) = 33.3%. Winning more than one trade in three is profitable before fees.

Frequently asked questions

What is a good risk-to-reward ratio?

There is no single good number. 1:2 needs a win rate above 33%, 1:1 needs above 50%. A strategy that wins 60% of the time can be profitable at 1:1; one that wins 30% needs better than 1:2.33.

Why does my real break-even win rate come out higher?

Fees, slippage and funding reduce every win and enlarge every loss, which pushes the win rate you need up. On tight stops the effect is largest.

Can I use it for short trades?

Yes. For a short the stop-loss sits above the entry and the target below; the calculator uses the distances, so the ratio and break-even rate work the same way.

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Estimates for education only — not financial advice. Exchange fees, slippage and funding are not included unless stated.