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Risk/Reward Calculator
See your risk-to-reward ratio, the win rate you need to break even, and what your setup is worth per trade.
Is My Setup Worth Taking?
Enter what you risk and what you aim to make on a trade, plus your win rate. We'll show the break-even point and what the setup is worth over time.
How Risk and Reward Fit Together
Bigger reward, fewer wins needed
At 1:1 you need to win half your trades to break even. At 1:2 a third is enough, and at 1:3 a quarter. Wider targets get hit less often, though, so your win rate usually drops as the ratio rises.
Size risk to your loss limits
A good ratio still fails if one loss breaks the daily limit. Keep each trade's risk a small share of today's room. The Drawdown Calculator shows how much that is.
Break-Even Win Rates
| Risk to reward | Win rate to break even |
|---|---|
| 1 : 1 | 50% |
| 1 : 1.5 | 40% |
| 1 : 2 | 33.3% |
| 1 : 3 | 25% |
Risk/Reward Questions
Does this include spreads and commissions?
No. Costs come off every trade, so leave a margin above the break-even win rate.
Is a higher ratio always better?
Not on its own. What counts is the expected result per trade, which depends on both your ratio and how often you win.
How do I find my win rate?
Count your winning trades over a recent run of at least 30 trades and divide by the total. A trading journal or analytics tool makes this easier.
More Free Calculators
Plan every part of your challenge and your payouts.
All Clarity Traders accounts are simulated. Figures are estimates for planning, not trading advice. Past results don't guarantee future ones.