Risk Reward Calculator

Calculate your risk reward ratio based on entry price, stop loss, and take profit. Suitable for Forex, Crypto, and prop firm traders.

A risk reward ratio shows how much you risk compared to how much you aim to gain on a trade.
Use this risk reward calculator to evaluate trade setups before entering the market.

How it works

1. Enter your risk reward ration

2. View the minimum win rate required to break even 

or

1. Enter your win rate

2. View the minimum risk reward ratio required to break even

The calculator instantly shows whether your strategy is mathematically viable.

What is a Risk Reward Calculator

A risk reward calculator helps traders understand the relationship between risk reward ratio and win rate.

By entering either your risk reward ratio or your win rate, the calculator shows the minimum value required to break even over a series of trades. This allows traders to evaluate whether a strategy can be profitable in the long run.

This tool is commonly used by Forex, Crypto, and prop firm traders to improve consistency and trading expectancy.

Why is risk reward important in trading

Using the risk reward calculator only takes a few seconds:

– Enter your risk reward ratio to calculate the required win rate

or

– Enter your win rate to calculate the required risk reward ratio

Click Calculate to instantly see the breakeven result.

The calculator updates immediately, allowing you to test different scenarios and refine your trading strategy.

How to use the Risk Reward Calculator

Using the risk reward calculator only takes a few seconds:

– Enter your risk reward ratio to calculate the required win rate

or

– Enter your win rate to calculate the required risk reward ratio

Click Calculate to instantly see the breakeven result.

The calculator updates immediately, allowing you to test different scenarios and refine your trading strategy.

Example Risk Reward Calculation

Suppose your trading strategy has a risk reward ratio of 1:2.

In this case, your win rate must be at least 33.3% to break even over time.

Alternatively, if your win rate is 40%, your risk reward ratio must be at least 1:1.5 to avoid losing money.

Use the calculator above to test different combinations and understand how risk reward and win rate affect profitability.

Why use our Risk Reward Calculator

Our risk reward calculator is built for traders who want clarity before entering a trade.

✔ Instantly calculate breakeven win rate
✔ Understand the relationship between risk and reward
✔ Ideal for prop firm and funded account traders
✔ No registration required
✔ Instant results

This tool helps you filter out unprofitable strategies and focus on high-quality trade setups.

Disclaimer

This risk reward calculator is provided for educational purposes only.
Results are based on mathematical models and may vary depending on trading behavior and market conditions.

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Risk Disclaimer

Trading involves risk, and you may lose some or all of your invested capital.
All information provided on PropEdgeTools is for educational and informational purposes only and does not constitute financial advice.

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We do not provide investment advice and are not responsible for any losses incurred as a result of using discount codes, services, or platforms listed on this website.
Always do your own research before making trading or financial decisions.

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