Risk / Reward
Ratio Calculator
See your R:R ratio and breakeven win rate instantly. Every trade should tell you how often you need to be right to stay profitable.
Trade Levels
Your Ratio
R:R Ratio
1:2.5
Breakeven Win %
29%
| Risk per Share | ₹0 |
| Reward per Share | ₹0 |
Trade Visualization
Understanding R:R
What Makes a Good Risk / Reward Ratio?
A risk/reward ratio expresses how much you stand to gain relative to what you risk. A 1:2 ratio means for every rupee you risk, you aim to make two. The higher the reward side, the more losing trades you can absorb and still be profitable.
Most professional traders avoid trades with an R:R below 1:2. Anything lower demands an unrealistically high win rate to stay profitable over time. Swing traders often target 1:3 or higher; scalpers can work with 1:1.5 when their win rate is consistently above 60%.
The breakeven win rate tells you how often you need to win to not lose money. With a 1:2 R:R, you only need to be right 33% of the time. This is the real power of asymmetric setups — they let you be wrong more often than right and still grow your account.
Breakeven Win Rate Table
| Risk / Reward | Breakeven Win Rate |
|---|---|
| 1:1 | 50% |
| 1:2 | 33% |
| 1:3 | 25% |
| 1:5 | 17% |
Frequently Asked Questions
How is risk/reward ratio calculated?
Risk = Entry − Stop Loss. Reward = Target − Entry. The ratio is Reward divided by Risk, expressed as 1:X where X is the multiple.
What is the breakeven win rate formula?
Breakeven Win Rate = 1 / (1 + R:R multiple). For a 1:2 R:R, that is 1 / (1 + 2) = 33.3%. Any win rate above that produces profit over time.
Should I always aim for high R:R trades?
Not always. High R:R trades tend to have lower win rates, and the emotional stress of many losers can lead to rule-breaking. Pick a ratio that matches your strategy and psychology.
Does R:R work for short trades too?
Yes. The calculator uses absolute differences so it works for both long and short positions. Just enter your actual entry, stop, and target.
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