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Wealth.cat

    Risk-reward ratio calculator

    Enter entry, stop-loss and take-profit prices to get the risk:reward ratio, both distances in pips and the break-even win rate.

    Risk : reward
    1 : 2
    Break-even win rate
    33.3%
    Risk (pips)
    25
    Reward (pips)
    50

    One pip = 0.0001. Results are estimates. Brokers and prop firms calculate prices and limits in their own way — check their rules.

    How it works

    Risk is the distance from the entry to the stop, reward the distance from the entry to the target, both in pips. The ratio 1 : R tells you how much you make for each unit you risk.

    Break-even win rate = (risk + costs) ÷ (risk + reward). With a 25-pip stop, a 50-pip target and 1 pip of costs: (25 + 1) ÷ (25 + 50) = 34.7%. Below that win rate the strategy loses money over time.

    Why it matters

    A higher ratio needs fewer winning trades, but distant targets are hit less often. The ratio on its own says nothing about probability — pair it with your real win rate.

    Updated October 7, 2026