Free Tool
Risk/Reward Ratio Calculator
Calculate your risk/reward ratio and the win rate you need to break even — before you enter the trade.
Configure
Result
excellentR:R Ratio
1 : 2.00
Risk per unit
0.00300
Reward per unit
0.00600
Breakeven win rate
33.3%
Win more than this percentage and you're profitable long-term
Track this automatically in your trading journal — no more manual math.
Projected P/L · 50 trades
50% win rate · 1R risk
Assumes 50% win rate and 1R risk per trade. A positive slope means your R:R gives a mathematical edge even without a high win rate.
How to use the risk/reward ratio calculator
Before you enter any trade, you should know exactly how much you stand to lose versus how much you stand to gain. This calculator does the math instantly: enter your planned entry price, stop loss price, and take profit price, and it will show you your risk per unit, reward per unit, the resulting risk/reward ratio, and the breakeven win rate required to be profitable at that ratio.
A risk/reward ratio of 1:2 or higher gives you a statistical edge even with a win rate below 50%. This is especially important for prop firm traders, where consistency over many trades — not a single big win — is what gets an account funded and keeps it funded.
Use this tool before every trade as part of your pre-trade checklist. If the ratio doesn't meet your minimum standard, it's often better to skip the trade and wait for a better setup.
Frequently asked questions
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TradersCompanion automatically tracks your risk, drawdown, and expectancy on every trade — so you don't have to calculate it by hand.