Risk/Reward Ratio Calculator
Calculate the risk/reward ratio for any trade. Determine your position size, expected value, and whether a trade is worth taking.
Trade Setup
STRONG SETUP
Risk/reward ratio
EXPECTED VALUE PER TRADE
At 45% win rate: Profitable edge
Frequently Asked Questions
What is a good risk/reward ratio?
Most professional traders target minimum 1:2 (risk $1 to make $2). A 1:3 or better ratio means you can be wrong 50% of the time and still profit. Never take a trade with a ratio below 1:1.
How does win rate interact with risk/reward?
Expected value = (Win rate × Avg win) - (Loss rate × Avg loss). At 1:2 R:R, you only need to win 34% of trades to break even. At 1:3 R:R, break-even win rate is just 25%.
Should risk be the same on every trade?
Fixed fractional risk (1-2% of account per trade) is the standard professional approach. It grows position sizes with your account and prevents any single loss from being catastrophic.
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For educational purposes only. Not financial advice. Consult a qualified advisor before making investment decisions.