Risk/Reward Calculator
Evaluate any trade setup by calculating the risk-to-reward ratio and the minimum win rate needed to break even.
Inputs
Results
Risk/Reward Ratio
1 : 3.00
Break-Even Win Rate
25.0%
Risk (per unit)
$5.00
Reward (per unit)
$15.00
Understanding Risk/Reward Ratios
The risk/reward ratio compares how much you stand to lose versus how much you could gain on a trade. A ratio of 1:3 means you risk $1 to potentially make $3.
With a 1:2 risk/reward ratio, you only need to win 33% of your trades to break even. This is why experienced traders focus on setups with favorable R:R ratios — it allows them to be profitable even with a moderate win rate.
Use GrandAlgo indicators to identify high-probability entries with optimal risk/reward setups. For more on improving your edge, read about why confluence trading matters and how to backtest your strategy.