Risk/Reward Ratio Calculator
See your reward-to-risk ratio and the break-even win rate it actually requires — before you take the trade.
Trade quality
Free, no sign-up, nothing leaves your browser — all math runs locally.
Risk/reward and the win rate it demands
Your risk/reward ratio compares what you'll lose if the stop hits to what you'll make if the target hits. The number most traders ignore is the one underneath it: the break-even win rate — the percentage of trades you must win just to not lose money at that ratio.
At 1:1 you need to win 50% of the time. At 1:2 you only need ~33%. At 1:3, just 25%. This is why "cut losers, run winners" is more than a cliché — pushing your reward-to-risk up mechanically lowers the win rate you need to be profitable, which is a far easier lever to pull than getting more trades right.
The catch nobody mentions
A great ratio on paper means nothing if you don't actually let trades reach the target. Most traders plan 1:3 setups and take them off at 1:1 out of fear — so their realized R/R is nothing like their planned one. The only way to know your real number is to record planned vs. actual on every trade. TradeInsights computes your realized R-multiple automatically from synced trades, so you can see the gap between the trader you plan to be and the one you are.
Frequently asked questions
What is a good risk/reward ratio?
Many traders target at least 1:2 (risk one unit to make two), because it only requires a ~33% win rate to break even. But there's no universal 'good' ratio — a 1:1 setup with a 60% win rate is more profitable than a 1:5 setup you only win 10% of the time. Ratio and win rate must be judged together.
What's the difference between R/R and R-multiple?
They're two views of the same thing. Risk/reward is expressed as a ratio (1:2); the R-multiple expresses the outcome in units of risk (a trade that hits a 1:2 target is a +2R win). Logging results in R lets you compare trades of different sizes on one scale.
How is break-even win rate calculated?
Break-even win rate = 1 ÷ (1 + reward/risk). It's the win percentage at which your wins exactly offset your losses for a given ratio. Anything above it is long-run profitable; below it, you bleed even with 'good' ratios.
Does it work for short trades?
Yes — switch the direction toggle to Short and the tool measures reward as entry minus target and risk as stop minus entry, with validation to catch flipped prices.
Why track realized vs. planned R/R?
Because they're usually different. Traders routinely close winners early and let losers run past the stop, so their actual R/R is worse than planned. Recording both on every trade — which TradeInsights does automatically — is the only way to measure and fix that leak.
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Know your real risk/reward, not the one you planned
TradeInsights computes your realized R-multiple on every synced trade — so you can see whether you actually let winners run.
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