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Risk-to-Reward Calculator

Compare planned price risk and reward before trading costs.

Educational estimates, not personalized investment advice. Verify broker specifications. Costs, slippage and changing exchange rates can increase actual loss. Example inputs are not live quotes.

Your estimate

See the numbers behind your plan.

Review the example inputs, adjust them to your scenario, then select Calculate.

  1. Check instrument specifications
  2. Enter your parameters
  3. Review the result and assumptions
Calculated in your browser. No account required.

How this calculator works

Risk-to-reward compares the distance to a planned target with the distance to a planned stop. It describes the geometry of the trade, not its probability of success. A larger reward multiple can still accompany a low win rate.

A quick visual example

Illustrative inputs · not live prices
  1. Risk distance2,000 − 1,990 = 10
  2. Reward distance2,020 − 2,000 = 20
  3. Compare outcomes20 ÷ 10 = 2R; ratio 1:2

Replaces the form inputs with this example and calculates the result.

Choose the right inputs

Choose direction and enter entry, stop and target. For a long example, the stop belongs below entry and the target above it; a short example reverses those sides. Optional size means underlying units, not broker lots. Convert lots into units using the contract size before entering this field.

Understand your result

The reward multiple divides potential reward by planned risk. The break-even win rate is risk divided by the sum of risk and reward. At 1:2 this is about 33.33%, but only under a simplified model of complete wins at target and complete losses at stop, with no costs. It is a mathematical threshold, not a predicted win rate.

Common mistakes to avoid

Do not treat a distant target as evidence that it will be reached. Partial exits, trailing stops, commissions and different realised win/loss sizes change the relationship. Monetary results are in the instrument’s quote currency and do not automatically represent a converted account balance.

Frequently asked questions

Does 1:2 mean I will double my account?

No. It means the target distance is twice the stop distance. The account effect also depends on size and outcome.

Why do costs raise the required win rate?

Costs reduce a winning trade’s net gain and can increase a losing trade’s net loss. The displayed threshold excludes those effects.

Sources and further reading

CME Group: contract size, ticks and profit/loss explains contract-based price exposure using futures examples; those contract specifications are not substitutes for a Forex or CFD broker’s settings.

CFTC: retail Forex customer advisory explains leverage and dealer risks in a US regulatory context. Neither source endorses Curizora or validates a particular broker or prop-firm rule set.

Calculation formula

Reward multiple = |target − entry| ÷ |entry − stop|. Break-even win rate = risk ÷ (risk + reward) × 100.

Worked example

Entry 2000, stop 1990 and target 2020 give 1:2 risk-to-reward and a 33.33% break-even win rate before costs.

Assumptions and limitations

Optional size is the number of underlying units, not lots. Monetary outputs are quote currency. Assumes full losses at stop and full gains at target; fees change break-even.

Read our calculation methodology · Explore trading guides

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