Trading Risk–Reward
Plan entries with stop/target, see risk–reward, break-even win rate, potential P/L, and expectancy. All calculations run locally in your browser.
Inputs
Shows % risk of account on this trade.
Results
Higher is better. 2:1 means aiming to make 2 units for each 1 unit at risk.
Minimum win rate to break even for the chosen RR.
Many traders cap risk per trade near 1–2% of equity; adjust position size to fit.
Expectancy = WinRate×Gain − (1−WinRate)×Loss.
Break-even win rate follows 1 / (1 + RR). Expectancy blends win rate and payoff. Fees/slippage reduce reward and increase risk, so include realistic values.
How to use this calculator
Pick direction (long/short), set entry, stop, target and your size. The tool derives risk per unit, reward per unit, RR ratio, break-even win rate, and potential P/L. Add fees and slippage for a more realistic picture.
Expectancy lets you sanity-check a setup using your estimated win rate. Positive expectancy (on average) suggests the sizing and payoff profile are favorable.
Educational only—markets change fast. Always consider liquidity, volatility, and event risk.
Best practices & next steps
- Size positions so max loss stays within a small % of equity (common: 1–2%).
- Aim for RR ≥ 2:1 on trades with modest win rates to keep the break-even lower.
- Track actual win rate and average win/loss to calibrate your expectancy.