Forex Risk/Reward Calculator

Calculate your risk-to-reward ratio and the minimum break-even win rate for any forex trade. Enter entry, stop-loss, and take-profit prices to instantly see if your trade setup has a positive expectancy.

Formula

Two core formulas

R:R Ratio R:R = |Target − Entry| ÷ |Entry − Stop|
Break-even Win % Break-even Win Rate = 1 ÷ (1 + R:R) [multiply by 100 for %]
Pip Distances Risk Pips = round(|Entry − Stop| ÷ Pip Size)

Pip size cancels in the R:R ratio — the core ratio is always computed from raw price differences, never pip counts.

Worked Example

Given

EUR/USD long · Entry 1.1000 · Stop 1.0950 · Target 1.1150

Risk (raw)
|1.1000 − 1.0950| = 0.0050
Reward (raw)
|1.1150 − 1.1000| = 0.0150
R:R Ratio
0.0150 ÷ 0.0050 = 3.0
Break-even Win Rate
1 ÷ (1 + 3.0) = 0.25 (25%)
Risk Pips
round(0.0050 ÷ 0.0001) = 50 pips
Reward Pips
round(0.0150 ÷ 0.0001) = 150 pips

Frequently Asked Questions

What is risk-to-reward ratio in forex?
The risk-to-reward (R:R) ratio compares the potential profit of a trade to its potential loss. An R:R of 3.0 means you stand to gain $3 for every $1 you risk. R:R is calculated as |target − entry| ÷ |entry − stop|. A higher R:R is generally better, but it must be paired with a realistic win rate to determine true expectancy.
What is the break-even win rate?
The break-even win rate is the minimum percentage of trades you need to win to break even at a given R:R ratio. Formula: Break-even Win Rate = 1 ÷ (1 + R:R). At 1:3 R:R, you need to win only 25% of trades to break even. At 1:1 R:R, you need 50%. The calculator returns this as a decimal — multiply by 100 to get the percentage.
Why does the calculator detect long vs short automatically?
If your stop-loss is below the entry price, the calculator infers a long (buy) trade. If the stop is above entry, it infers a short (sell) trade. The pip distance calculations are always the absolute difference, so the R:R formula is correct regardless of direction.
What is a good risk-to-reward ratio for forex?
Professional traders commonly target a minimum of 1:2 R:R, meaning $2 profit per $1 risk. At 1:2 R:R, you only need a 33% win rate to break even. Many strategies target 1:3 or higher. However, higher R:R targets mean the price must travel further, which may reduce win rate — the optimal ratio depends on your specific strategy and market.
Does pip size affect the R:R ratio?
No. Because R:R is the ratio of two price differences on the same pair, the pip size cancels out in the division. The calculator uses raw price differences for the ratio and only applies pip size for the display fields (Risk pips, Reward pips). This means the R:R is always mathematically precise regardless of whether you enter JPY or non-JPY pair prices.