PipDesk

Risk-to-Reward Calculator

Risk Management

Check your risk-to-reward ratio and the win rate you need to stay profitable.

Trade direction

%

Risk : Reward

1 : 2

Risk (distance)

0.005

Reward (distance)

0.01

Breakeven win rate

33.3%

Expectancy per trade

+0.35 R

Risk vs. reward

Risk
Reward

You need to win more than 33.3% of trades at this ratio just to break even, before costs.

Expectancy (R) = (Win rate × Reward ratio) − (Loss rate × 1). A positive expectancy means the strategy is profitable over a large enough sample size, assuming the win rate holds.

How to use it

Using the Risk-to-Reward Calculator in 4 steps

  1. 1Choose your trade direction — buy or sell.
  2. 2Enter your entry, stop loss, and take profit prices.
  3. 3Enter your estimated win rate for this setup or strategy.
  4. 4Review your risk:reward ratio, breakeven win rate, and expectancy in R.

Why it matters

What this does for your trading

  • Confirms a setup is worth taking before you risk any capital.
  • Reveals the win rate you actually need to be profitable at your chosen ratio.
  • Builds the discipline to reject low-quality setups where reward doesn't justify the risk.