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.
Results are estimates, not financial advice. Actual broker conditions may differ.