Risk Reward Ratio Calculator (Free) | AlgoBars

Free risk-reward calculator

The short answer

The reward-to-risk ratio is the distance to your target divided by the distance to your stop. The break-even win rate is 1 ÷ (1 + R). With a 1:2 setup you break even winning about 33% of trades, before costs.

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Frequently asked questions

What is a good risk-reward ratio?

There is no single answer: it depends on your win rate. A 1:2 ratio breaks even at about a 33% win rate, before costs.

What is the break-even win rate?

1 ÷ (1 + reward-to-risk ratio).

More answers

Calculators are for education. Check figures with your broker, whose contract sizes and conversion rates may differ. Trading involves risk of loss.

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