Risk:Reward Calculator
Check a trade's risk:reward ratio and the win rate it needs to break even.
Why it matters
A trading plan with a poor risk:reward ratio needs an unrealistically high win rate just to survive. This is the first filter we teach members to apply to every setup before size or entry timing even enter the conversation.
Learn the full risk model in MentorshipMethodology
Risk:Reward and break-even win rate
R:R = Reward ÷ Risk · Break-even Win Rate = Risk ÷ (Risk + Reward)- 1Enter your entry, stop-loss, and take-profit prices.
- 2The tool measures the risk distance (entry to stop) and the reward distance (entry to target).
- 3Risk:reward is the reward divided by the risk — a 1:2 ratio means you're risking $1 to make $2.
- 4Break-even win rate is the minimum win rate you'd need at that ratio just to not lose money over time — a lower ratio needs a higher win rate to break even, and vice versa.
Worked example
Inputs
- Entry
- 1.0850
- Stop-loss
- 1.0800
- Take-profit
- 1.0950
Result
- Risk:Reward
- 1 : 2.00
- Break-even win rate
- 33.3%
Why it matters
A trading plan with a poor risk:reward ratio needs an unrealistically high win rate just to survive. This is the first filter we teach members to apply to every setup before size or entry timing even enter the conversation.
Learn the full risk model in MentorshipReferences
- The standard expectancy relationship between win rate and risk:reward ratio taught across trading risk-management education.
Figures here are for educational planning only — not trading, investment, or tax advice. Confirm exact contract size, margin, and leverage with your own broker or prop firm before trading real size.