Free tools
Risk-reward ratio and expectancy calculator
See what a trade pays for what it risks, and how often you need to win for it to break even.
Your numbers
Result
- Risk distance
- 0.002
- Reward distance
- 0.004
- Risk-reward ratio
- 1 : 2 (2R)
- Break-even win rate
- 33.3%
- Expectancy per trade (R)
- +0.35R
For education only. The results depend on the numbers you enter and are not investment advice.
How it works
The risk is the distance from entry to stop loss and the reward is the distance from entry to take profit. The ratio is reward divided by risk: a 20-pip stop with a 40-pip target is 1:2, or 2R.
The break-even win rate is 100 divided by (1 + ratio). With a win rate, expectancy per trade in R is win rate × ratio − (1 − win rate).
Good to know
- The direction comes from the order of the prices: a stop below the entry is a buy, above it a sell.
- A high ratio is not automatically good: if the target is rarely reached, the win rate falls. Judge the two together, on your own results.
- A win rate you type in is an assumption. Your journal shows the real one from your closed trades.