Free tool
Risk / Reward Calculator
Measure the reward-to-risk ratio of a trade idea and the win rate you would need to break even.
Results are estimates based only on the figures you enter, for information and education only. They are not investment advice or a forecast. Crypto and stock markets carry real risk, including the loss of capital.
Reward, risk, and the win rate you really need
Before taking any trade, it is worth asking whether the potential reward justifies the risk. The reward-to-risk ratio compares how far the price would travel to your target against how far it would travel to your stop-loss. A ratio of 2:1 means you stand to gain twice what you would lose if wrong.
The more revealing number is the break-even win rate — the percentage of trades you would need to win, at that ratio, simply to avoid losing money over time. At 2:1 you only need to be right about a third of the time; at 1:1 you need better than half. This reframes trading away from "being right" and toward whether the maths is in your favour across many trades. No ratio makes a single trade safe, and stops can be skipped in fast markets, but understanding the relationship is foundational to disciplined risk-taking.