Risk-reward ratio and targets from entry, stop and take-profit.
The risk-reward calculator compares how much you could lose on a trade with how much you could gain. Enter your entry, stop-loss and take-profit prices, and it returns the distance to each in pips, the risk-reward ratio, the win rate you need to break even and, if you add a lot size, the money at stake.
Reward-to-risk (R) = reward pips ÷ risk pips
You plan to buy 0.5 lots of EUR/USD at 1.10000, with a stop-loss at 1.09700 and a take-profit at 1.10600.
Set your stop where the trade idea is proven wrong, then check whether a sensible target still gives a ratio you are happy with. Avoid stretching a target just to improve the numbers: a realistic 1 : 1.5 often beats a 1 : 4 that price rarely reaches. The break-even win rate leaves out the spread and commission, so your real threshold is a little higher.
Learn more in our guides to the risk-reward ratio, stop-loss strategies and take-profit strategies. Once you know your stop distance, the position size calculator tells you how many lots to trade.
Many traders look for at least 1 : 2, risking one to make two, so that winners outweigh losers over time. The right ratio depends on your strategy: scalpers often accept a lower ratio with a higher win rate, while trend traders aim higher.
The higher your reward-to-risk, the lower the win rate you need to break even. The calculator shows this as 1 ÷ (1 + R). At 1 : 1 you need to win 50% of trades, at 1 : 2 about 33.3%, and at 1 : 3 just 25%.
Both are used. This calculator puts risk first, so 1 : 2 means you risk one unit to make two. Some traders describe the same trade as a 2 : 1 reward-to-risk. Check which way round a figure is written before you compare strategies.
The risk and reward in money are shown in the pair's quote currency: USD for EUR/USD, gold, silver and bitcoin, JPY for yen pairs, and so on. To see the value in your own account currency, use the pip value calculator.
Yes. The calculator measures the distance from your entry to each level, whichever way you trade. For a sell, enter a stop-loss above the entry and a take-profit below it. It does not check which side each level is on, so double-check them.