Risk reward calculator
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Risk Reward Ratio Calculator
Compare what you risk with what you hope to make. Enter your entry, stop loss and target and see the risk to reward ratio and the win rate you need just to break even.
What the ratio means
Risk reward ratio = distance to target / distance to stop loss. A ratio of 1:2 means you aim to make twice what you risk.
The break-even win rate is 1 / (1 + R), where R is the reward to risk ratio. At 1:1 you need to win 50% of trades. At 1:2 you need 33.3%. At 1:3 you need 25%. Costs push these numbers up.
Reading the table
The table shows the average result per trade, measured in R (the amount you risk on each trade), for different win rates. A positive number means that win rate would make money over many trades at this ratio. It is arithmetic and not a forecast: real win rates are never known in advance and vary with conditions.
Default contract specifications used
| Instrument | 1 lot | Pip size | Value of 1 pip per lot |
|---|---|---|---|
| Gold (XAU/USD) | 100 oz | 0.1 | $10.00 |
| Silver (XAG/USD) | 5,000 oz | 0.01 | $50.00 |
| WTI crude oil | 1,000 barrels | 0.01 | $10.00 |
| Brent crude oil | 1,000 barrels | 0.01 | $10.00 |
| Natural gas | 10,000 MMBtu | 0.001 | $10.00 |
| Copper | 25,000 lb | 0.0005 | $12.50 |
| Platinum (XPT/USD) | 50 oz | 0.1 | $5.00 |
| Palladium (XPD/USD) | 100 oz | 0.1 | $10.00 |
Typical values, not offered by us. Always confirm with your own broker or exchange.
Frequently asked questions
What is a good risk reward ratio?
There is no universal answer. A higher ratio needs a lower win rate to break even, but targets that are further away are hit less often. What matters is the ratio together with your real win rate and costs.
How do I calculate the break-even win rate?
Divide 1 by one plus the ratio. With a reward of two times the risk: 1 / 3 = 33.3%.
Does this account for spread and commission?
No. Costs make the stop effectively closer and the target effectively nearer, which raises the win rate you need.
Is a high ratio always better?
No. A very distant target may rarely be reached. Compare the ratio with how often similar targets have been hit on the chart you trade.
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Position size calculatorProfit calculatorStop loss and position sizingLive gold price
Educational calculator, not investment advice. Leveraged products such as CFDs carry a high risk of losing money quickly. Prices are indicative. Terms.