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 16 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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