Risk/Reward Ratio Calculator
Calculate your trade's risk/reward ratio. Know your R/R before entering the market.
Instant R/R
Quickly calculate R/R ratio from entry, stop loss, and take profit.
Trade Quality
Rate your trade quality as Poor, Good, or Excellent based on R/R.
Win Rate
Learn the minimum win rate needed to be profitable at your R/R.
R/R Ratio vs Required Win Rate
| R/R | Required Win Rate | Quality |
|---|---|---|
| 1:0.5 | 67% | Poor |
| 1:1 | 50% | Fair |
| 1:2 | 33% | Good |
| 1:3 | 25% | Very Good |
| 1:5 | 17% | Excellent |
R/R Formulas
Does not include commissions or slippage. Actual results may vary.
Frequently Asked Questions
What is the risk/reward ratio?
The risk/reward ratio (R/R) compares how much you stand to lose versus how much you can gain on a trade. A 1:3 R/R means you risk $1 to potentially make $3.
What is a good R/R ratio?
A minimum of 1:2 is recommended. This means you can be profitable even if you only win 1 out of every 3 trades (33% win rate).
How is R/R calculated?
R/R = (Take Profit - Entry) / (Entry - Stop Loss) for long trades. For short trades: R/R = (Entry - Take Profit) / (Stop Loss - Entry).
Can you trade with a low R/R?
Trading with R/R below 1:1 requires a high win rate (60%+), which is difficult to maintain. Most professional traders avoid sub-1:2 setups.
Related Tools
For educational purposes only. R/R alone does not guarantee profitability.