Risk/Reward Calculator

Express a trade idea as a ratio between stop distance and target distance.

Risk/Reward Calculator

pips
pips

Risk / reward ratio

1 : 0.00

How to use it

  1. 1Enter the stop-loss distance in pips.
  2. 2Enter the take-profit distance in pips.

Formula

Ratio = Target distance ÷ Stop distance

Worked example

A 30-pip stop with a 60-pip target is a 2.0 risk/reward ratio.

Why it matters

Risk/reward is only meaningful alongside win rate. A high ratio with a low hit rate can perform worse than the reverse.

Frequently asked questions

What ratio is good?

There is no universal answer — it depends entirely on how often the strategy reaches its target.