Risk/Reward Ratio Calculator
PROCalculate the risk-to-reward ratio of a trade and see the dollar amounts at stake.
CFA, CMT — Chartered Financial Analyst & Chartered Market Technician
Former institutional trader with 15 years experience across equities, forex and derivatives. Now focused on financial education.
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About the Risk/Reward Ratio Calculator
The risk-to-reward (R:R) ratio measures how much profit you target relative to what you risk. A 1:2 ratio means for every $1 at risk you aim to make $2.
A minimum R:R of 1:2 is recommended — you only need to win 33% of your trades to break even.
Tips to improve your result
- 1.
Never take trades with R:R below 1:1.
- 2.
A 1:3 ratio with 40% win rate is more profitable than 1:1 with 60% win rate.