Risk/Reward Ratio Calculator
Quickly evaluate if a trade setup meets your minimum risk-to-reward criteria.
Risk/Reward Ratio
1 : 3.00
Risk vs Reward
Risk: 30 pips
Reward: 90 pips
RiskReward
Why Risk/Reward Matters
The risk-to-reward ratio tells you how much you stand to gain for every dollar you risk. A ratio of 1:2 means your potential reward is twice your potential risk.
R:R = |Take Profit − Entry| / |Entry − Stop Loss|
Most professional traders look for a minimum ratio of 1:2. With a 1:2 ratio, you only need to win 34% of your trades to break even — making it a powerful edge over time.