Free tool
Risk:reward calculator
See the reward-to-risk ratio of a trade, the win rate it needs to break even, and the expectancy at your win rate.
Conversions use reference rates from 6 October 2026. Your broker’s live prices will differ slightly.
Break-even win rate by ratio
| Risk : reward | Break-even win rate |
|---|---|
| 1 : 0.5 | 66.7% |
| 1 : 1 | 50.0% |
| 1 : 1.5 | 40.0% |
| 1 : 2 | 33.3% |
| 1 : 2.5 | 28.6% |
| 1 : 3 | 25.0% |
| 1 : 4 | 20.0% |
| 1 : 5 | 16.7% |
A high ratio isn’t automatically better: distant targets get hit less often. What matters is the combination of ratio and win rate, your expectancy. Read risk management for the full picture.
FAQ
What is a good risk:reward ratio?
There is no single answer. It depends on your win rate. At 1:2 you need to win more than 33% of trades to break even, and at 1:1 more than 50%. Many traders look for at least 1:1.5 to leave room for costs.
How is break-even win rate calculated?
Break-even win rate = 1 ÷ (1 + reward/risk). For a 1:2 trade, 1 ÷ 3 = 33.3%.
What is expectancy?
The average result per trade in multiples of your risk (R): win rate × reward/risk − loss rate. Positive expectancy means the strategy makes money over many trades, before costs.
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