Risk/Reward Calculator
Enter entry, stop loss and take profit to see the risk and reward in pips — and in money if you add your position size.
How is this calculated?
Risk/reward = distance to take profit ÷ distance to stop loss
- Risk and reward are measured in pips from the entry, in the direction the trade implies.
- The stop loss and take profit must sit on opposite sides of the entry price.
- Adding an instrument and lot size converts the two distances into money in your account currency.
Frequently asked questions
What is a good risk/reward ratio?
Many traders aim for at least 1:2 — the potential profit is twice the potential loss. The right ratio also depends on your win rate, not just the ratio itself.
Why does a 1:2 ratio not guarantee profit?
The ratio says nothing about probability. A 1:2 setup that wins a third of the time loses money after costs — the ratio is one input, not a verdict.
Should I always use the same ratio?
No. Structure, volatility and your strategy determine a sensible stop and target. The calculator measures the trade you have actually planned.
Related calculators
- Position Size CalculatorCalculate forex position size from your entry, stop loss and risk percentage — and see the risk/reward ratio and potential profit at your take profit.
- Profit & Loss CalculatorEstimate forex profit or loss for any trade: pair, direction, entry and exit price, and lot size — converted into your account currency.
Related guides
- Risk/Reward Ratio ExplainedA risk/reward ratio compares what a trade stands to gain against what it stands to lose. Here is what it means, the win rate you need just to break even, and why a bigger ratio is not automatically better.
- Win Rate and Expectancy: How to Know if a Strategy Makes MoneyA 70% win rate can lose money and a 35% win rate can make it. What decides it is expectancy — win rate and reward-to-risk together. Here is the formula, the breakeven table, and how to measure it from your own trades.
- How to Set a Stop Loss in ForexA stop loss belongs where the trade idea is proven wrong, not where the loss feels affordable. Here is how to place stops from market structure and volatility, add a spread buffer, and size the position to match.
- How Much to Risk Per Trade?Risking a fixed 1–2% of the account on every trade is the habit that keeps a losing streak survivable. Here is why it works, what ten losses in a row does to an account at 1%, 2%, 5% and 10%, and how to turn the percentage into a lot size.
Results are estimates, not financial advice. Actual broker conditions may differ.