Risk/Reward Calculator
Compare what you risk with what you stand to gain, and see the win rate you need to break even.
How risk/reward works
Risk = |Entry − Stop loss| and Reward = |Take profit − Entry|. The R:R ratio is Reward ÷ Risk, so a 50-pip stop with a 100-pip target is 1 : 2. Pip distances use 0.0001 per pip for most forex pairs, 0.01 for JPY pairs, and 0.1 for gold.
Breakeven win rate = 1 ÷ (1 + R:R). At 1 : 2 you only need to win 33.3% of trades to break even before costs; at 1 : 1 you need 50%.
FAQ
What is a good risk/reward ratio? Many traders aim for at least 1 : 2, but the right ratio depends on your strategy’s real win rate. A high R:R with a very low hit rate can still lose money.
Can I use multiple targets? Yes. Add up to three take-profit levels to see the R:R and breakeven win rate for each partial exit.
Once you know your stop distance, size the trade with the position size calculator or check the pip value for your account currency.
Read Risk Reward Ratio or browse the Risk Management guides on RealMarketAPI Learn.
Feed calculations like this with real-time forex, gold and crypto prices from RealMarketAPI. Get a free API key or read the docs.