Trade Quality
Calculate your trade risk-reward ratio, potential profit, loss, and break-even win rate before placing your order. Free online R:R calculator.
The Risk-Reward Calculator on Currency Strength Meter (currencystrengthsmeters.com) is free to use, requires no signup, and runs directly in your browser.
Position Type
Trade Setup
Risk / Reward Analysis
Risk : Reward
1 : 2.5
Potential Loss
-$500.00
Potential Profit
+$1,250.00
Risk Per Unit
$5.00
Reward Per Unit
$12.50
Break-even Win Rate
28.6%
A risk-reward calculator measures the relationship between how much a trade could lose and how much it could gain, based on your entry price, stop loss, and profit target. It expresses that relationship as a simple ratio, such as one to two, so you can judge at a glance whether a setup is structurally worth taking before you ever place the order.
The calculation itself is straightforward -- the distance from entry to stop loss represents risk, and the distance from entry to target represents reward -- but doing it consistently, on every trade, before entry rather than after, is what actually changes trading outcomes over time.
Beyond the raw ratio, this tool also calculates the minimum win rate required for a strategy with that ratio to break even, which turns an abstract number into a practical benchmark you can compare against your own historical performance.
Two trades can look equally attractive on a chart while having very different risk-reward profiles underneath. A setup with a tight stop and a distant target can be structurally excellent even if it looks less obvious than a setup with a wide stop and a close target, and this tool is what makes that difference visible.
Many trading plans quietly fail not because the win rate is bad, but because the reward being sought is too small relative to the risk being taken, which forces an unrealistically high win rate just to break even. Seeing that break-even win rate clearly can prevent a trader from taking a mathematically unfavorable setup out of habit.
Filtering trades by risk-reward before entry is one of the simplest ways to improve consistency without changing anything about how a trader finds setups in the first place. It adds a checkpoint, not a new strategy.
Choose your trade direction, long or short, then enter your entry price, stop loss price, and profit target price exactly as you plan to use them on the actual trade, not rounded or estimated after the fact.
Enter your intended position size in units so the calculator can convert price distances into potential dollar loss and potential dollar profit, not just an abstract ratio. This makes the output easier to compare against your risk management rules directly.
Review the resulting ratio and break-even win rate together. A ratio that looks acceptable on its own can still be paired with an unrealistic win rate requirement, so checking both numbers side by side gives a more complete picture before you commit to the trade.
It is worth remembering that risk-reward ratio says nothing about the probability of the trade working, only about the payoff if it does. A high ratio setup with a very low win rate can still lose money over time, which is why this tool works best alongside a realistic, honestly tracked win rate from your own trading history.
Moving a stop loss or target after the fact to artificially improve the ratio is a common but self-defeating habit. The value of this calculator comes from using it before entry, with levels chosen from chart structure, not from adjusting inputs until the ratio looks more favorable.
Some of the strongest setups have modest ratios close to one to one, but combine that with a genuinely high win rate based on a well-tested strategy. The ratio and the win rate are a pair, not independent numbers, and neither one alone tells the full story of whether a setup is worth taking.
If you choose to execute trades with a broker, you can open an account with Exness through our partner link. This website is educational and does not provide financial advice or guaranteed returns.
Disclaimer: All calculators, examples, and educational content are provided for informational purposes only. Trading leveraged products involves substantial risk, including possible loss of capital. Always verify contract specifications, fees, spread, and execution conditions with your broker before trading.
Inputs: Direction: Long | Entry: 150 | Stop: 145 | Target: 162.5 | Units: 100
Risk per unit = $5.00, reward per unit = $12.50, potential loss = $500.00, potential profit = $1,250.00, break-even win rate = 28.6%.
Inputs: Direction: Short | Entry: 1.2550 | Stop: 1.2600 | Target: 1.2450 | Units: 50,000
Risk per unit = 0.0050, reward per unit = 0.0100, so ratio is 1:2. Potential profit is double potential loss before costs.
Inputs: Direction: Long | Entry: 80 | Stop: 78 | Target: 81 | Units: 300
Risk per unit = $2, reward per unit = $1. Ratio is 1:0.5, which requires very high win rate and is usually inefficient for most strategies.
Inputs: Direction: Long | Entry: 100 | Stop: 97 | Target: 106 | Units: 200
Risk per unit = $3, reward per unit = $6, giving a ratio of 1:2 and a break-even win rate of roughly 33%. A strategy that wins more than a third of the time on setups like this should be profitable before costs.
Inputs: Direction: Short | Entry: 50 | Stop: 52 | Target: 46 | Units: 500 vs Units: 1,000
The ratio stays 1:2 regardless of position size, but potential loss and potential profit both double when units double, from roughly $1,000 loss and $2,000 profit up to $2,000 loss and $4,000 profit.
Inputs: Direction: Long | Entry: 20 | Stop: 19 | Target: 20.5
Risk per unit = $1, reward per unit = $0.5, giving a ratio of 1:0.5 and a break-even win rate above 66%, which is a difficult bar for most strategies to clear consistently over time.
Many traders look for at least 1:1.5 or 1:2, depending on strategy win rate. The best ratio is the one that keeps your expectancy positive over a large sample of trades.
Break-even win rate is the minimum win percentage needed to avoid losing money at a given risk-reward ratio, before fees and slippage.
You can, but low reward relative to risk means you need much higher accuracy to stay profitable. Most traders improve stability by filtering out poor-ratio setups.
Yes. Risk-reward quality and position sizing work together. One helps evaluate trade quality, and the other controls capital exposure.
The calculator gives clean estimates based on prices and units. For live execution, account for spread, commissions, and slippage before finalizing the trade plan.
Not necessarily. A higher ratio can come from placing the target at an unrealistic distance, which lowers the probability of actually reaching it. Ratio and probability need to be considered together, not the ratio alone.
Expectancy combines win rate and risk-reward ratio into a single expected outcome per trade. This calculator gives you the ratio and break-even win rate half of that equation, which you can then combine with your tracked win rate.
No. Levels should come from chart structure such as support, resistance, and volatility context, which naturally vary from trade to trade rather than following a fixed pip distance every time.
That is normal and expected. Risk and reward are measured independently from entry, so an asymmetrical setup simply produces a ratio that is not exactly one to one, which the calculator handles automatically.
Yes, the underlying math of comparing risk distance to reward distance applies to any instrument with a clear entry, stop, and target, though position sizing details will differ by asset class.
Stop loss and target prices need to be on the correct side of entry for the selected direction. The validation messages help catch setups where levels were entered in the wrong order for a long or short trade.
It can be, particularly for strategies with a genuinely high win rate. A 1:1 ratio simply requires winning more than half of trades to be profitable before costs, which some short-term or mean-reversion strategies are built around.