Free tool
Risk-reward calculator
See your risk-reward ratio, the win rate you need to break even and your expectancy per trade, from just your entry, stop loss and take profit.
Risk : reward
1 : 2.50
- Break-even win rate
- 28.6%
- Expectancy / trade
- +0.57R
- Risk
- 40.0 pts$40.00
- Reward
- 100.0 pts$100.00
At a 45% win rate this trade has an edge: about 0.57R per trade over time.
Win rate you need for each risk-reward
| Risk : reward | Break-even win rate | Expectancy at 40% wins | At 50% wins |
|---|---|---|---|
| 1 : 1 | 50.0% | -0.20R | +0.00R |
| 1 : 1.5 | 40.0% | +0.00R | +0.25R |
| 1 : 2 | 33.3% | +0.20R | +0.50R |
| 1 : 2.5 | 28.6% | +0.40R | +0.75R |
| 1 : 3 | 25.0% | +0.60R | +1.00R |
| 1 : 4 | 20.0% | +1.00R | +1.50R |
Need the position size too? Use the lot size calculator.
Questions traders ask
What is a risk-reward ratio?
It compares how much you could lose (entry to stop loss) with how much you could make (entry to take profit). A 1:2 risk-reward means you aim to make $2 for every $1 you risk.
What is a good risk-reward ratio for day trading?
There's no single best number. A 1:2 ratio only needs a 33.3% win rate to break even, while 1:1 needs 50%. What matters is that your real win rate is comfortably above the break-even rate for the ratio you use.
How do I work out the win rate I need?
Break-even win rate = 1 ÷ (1 + reward-to-risk). For 1:3 that's 1 ÷ 4 = 25%. Win more often than that, after costs, and the strategy makes money over time.
What is expectancy in R?
Expectancy is the average result per trade in units of risk (R): win rate × reward − loss rate × 1. A positive number means the setup has an edge; +0.3R means you make 30% of your risk per trade on average.
How do I track my real risk-reward?
Log every trade in a trading journal. TradeIQ works out the R of each trade automatically and shows your win rate, average R and profit factor per setup.
Know your real risk-reward, not your planned one
TradeIQ works out the R of every trade you log and shows your actual win rate, average R and profit factor per setup. Free forever.