Risk Reward Ratio & Win Rate Calculator: Mastering the balance between risk and reward is crucial for long-term trading success. That’s why we’ve a powerful Risk/Reward Ratio and Win Rate Calculator to help you find the minimum ratio or win rate needed to break even in your trades. Whether you’re a seasoned trader or just starting out, this tool gives you the insight needed to optimize your strategy and manage risk effectively.
Simply enter your trade details, and our calculator will instantly show the minimum risk/reward ratio or win rate required for breakeven. This enables you to set realistic profit targets and stop-loss levels, empowering you to trade with confidence. Don’t gamble with your capital—use our Risk/Reward Ratio and Win Rate Calculator today and take the first step toward smarter trading!
1. Risk-Reward Ratio
The Risk-Reward Ratio measures how much risk you are willing to take for a potential reward. It’s calculated as: 
- Potential Loss = Entry Price – Stop Loss
- Potential Gain = Take Profit – Entry Price
Example Calculation:
- Entry Price = 1.2000
- Stop Loss = 1.1950 (50 pips risk)
- Take Profit = 1.2100 (100 pips reward)
This means you are risking 1 unit to potentially gain 2 units.
2. Win Rate
The Win Rate is the percentage of trades you win out of the total number of trades. It’s calculated as:
Example Calculation:
- Number of Winning Trades = 40
- Total Number of Trades = 100
3. Relationship Between Win Rate and Risk-Reward Ratio
To be profitable in trading, you need to balance the Risk-Reward Ratio with the Win Rate. Here’s how they relate:
For example, if you use a Risk-Reward Ratio of 1:2:
This means you need to win at least 33.33% of your trades to break even. If your Win Rate is higher, you are profitable.
4. Tips for Using Risk-Reward and Win Rate in Forex Trading
- Aim for a Risk-Reward Ratio of at least 1:2 to maximize gains while minimizing losses.
- Track your Win Rate to understand your trading performance and adjust strategies accordingly.
- Combine with Money Management: Never risk more than 1-2% of your account balance on a single trade.
- Regularly Review and Adjust: Continuously monitor your trades to maintain a healthy balance between Win Rate and Risk-Reward Ratio.