Results
Enter valid numbers to see the result. The calculator updates as you type.
- Trade direction–
- Risk–
- Reward–
- Break-even win rate–
- After costs–
- Expectancy–
Calculator limits
Results are arithmetic on the numbers you enter, not trading advice. Brokers may use different contract sizes (especially for exotic pairs and CFDs), round lot sizes differently and convert profits at their own rates. Leveraged forex and CFD trading carries a high risk of losing money quickly; most retail CFD accounts lose money. Check your broker's contract specification before you trade.
The formulas
Reward (pips) = |Target − Entry| ÷ pip size
R multiple = Reward ÷ Risk (shown as 1 : R)
Break-even win rate = 1 ÷ (1 + R)
Expectancy (in R) = Win rate × R − (1 − Win rate)
Example
Long EUR/USD at 1.0850, stop 1.0820, target 1.0910. Risk 30 pips, reward 60 pips → 1 : 2. Break-even win rate = 1 ÷ 3 = 33.3%. With a 1-pip spread the effective numbers are 31 pips risk and 59 pips reward → 1 : 1.90 and a 34.4% break-even win rate.
If you win 40% of such trades, expectancy = 0.40 × 2 − 0.60 = +0.20 R per trade — on average you make 0.2 times the amount risked per trade, before any other costs.
Reading the result
- A higher reward-to-risk ratio lowers the win rate you need, but targets further away are reached less often. The ratio alone says nothing about whether a trade is good.
- Expectancy needs a realistic win rate. Use the figure from your own trading journal, not a guess.
- Costs matter most on short-term trades: a 1.5-pip spread is small against a 100-pip target and large against a 10-pip one.
Full lesson: risk-reward ratio explained. To turn the stop distance into a lot size, use the position size calculator.
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Last reviewed: October 4, 2026