Risk / Reward Calculator
How risk/reward works
Your risk/reward ratio compares how much you stand to lose against how much you stand to gain on a trade. A 1:3 ratio means you risk 1 to make 3. The higher the reward side, the lower the win rate you need to be profitable.
The breakeven win rate is the key insight: at 1:1 you need to win 50% of trades just to break even, but at 1:3 you only need to win 25%. That's why disciplined traders hunt for high reward-to-risk setups — it takes the pressure off being right every time.
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Position Size
Trade the right lot size for your risk.
Pip Value
What each pip is worth.
Risk / Reward
Ratio + breakeven win rate.
Profit & Loss
Estimate a trade's P&L.
Frequently asked questions
What is a good risk/reward ratio?
Many traders aim for at least 1:2 (risk 1 to make 2). At 1:2 you only need to win about 34% of trades to break even, which makes a strategy far more forgiving than a 1:1 ratio that needs a 50% win rate.
How do you calculate risk/reward?
Risk/reward = reward ÷ risk, where risk is the distance from entry to stop loss and reward is the distance from entry to take profit. A $10 risk and a $30 reward is a 1:3 ratio.
What win rate do I need to be profitable?
It depends on your ratio. At 1:1 you need over 50%, at 1:2 about 34%, and at 1:3 about 25%. A higher reward-to-risk ratio lowers the win rate you need to stay profitable.