# Risk Reward Ratio Calculator with Breakeven Win Rate

> Free risk to reward calculator. Enter entry, stop and target to get the R multiple and the win rate that setup needs just to break even.

Free tool · Calculators

# Risk to reward calculator

Forex, futures, indices and crypto. No sign-up, no email.

Your R multiple, and the win rate it needs to break even.

Instrument

### Levels

Direction

Entry

Stop

Target

Risk amount USD · optional

Risk : Reward

Enter an entry, stop and target.

How it works

`R = (target - entry) / (entry - stop)`

`breakeven win rate = 1 / (1 + R)`

Both distances are measured from the entry, so the ratio holds whatever the instrument and whatever the size. Only the direction of the stop and target changes between a long and a short.

A worked example

1. Long from 1.0850, stop at 1.0800, target at 1.0980.
2. Risking 0.0050 to make 0.0130.
3. 0.0130 / 0.0050 = 2.6R.
4. 1 / (1 + 2.6) = 27.8%, the win rate that setup needs to break even.

FAQ

## Worth knowing

### Is a higher ratio always better?

No, and this is the trap. A 5R target has a lower breakeven win rate on paper and is also further away, so it is hit less often. The ratio is only worth having if your actual win rate clears the number below it.

### What is an R multiple?

Your risk expressed as one unit. If you risk $200 and make $600, that is 3R whatever the account size, which is what makes trades comparable across accounts and instruments.

### Does the breakeven win rate include costs?

No. It is the pure price arithmetic. Spread and commission push the real figure a little higher, so treat the number here as the floor rather than the target.

## The calculation is the easy half

Connect your broker once and Edge learns from your trades, journal and practice to show you what to fix, sizing included. Free to start.

[Start free](https://www.thedtterminal.com/login?signup=true)

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Risk disclosure: Futures, forex and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. [Read the full risk disclosure](https://www.thedtterminal.com/legal/risk-disclosure).

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