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Risk Reward Ratio Calculator

Calculate your trade's R:R ratio, find the minimum win rate needed to be profitable, and see the expected value across 100 trades. Used by FTMO-funded and prop firm traders worldwide.

Calculate R:R Ratio

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R:R Ratio
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Break-even Win Rate
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EV per Trade (at 50% WR)
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Verdict

R:R Ratio Reference Table

Values assume $100 risk per trade across 100 trades. Break-even win rate = 1 ÷ (1 + R:R). *1:1 at exact 50% win rate = $0 net before costs.

R:R RatioBreak-even Win RateNet at 45% Win RateVerdict
1:1 50.1% +$0* Minimum viable
1:1.5 40.1% +$50 Good for high win-rate traders
1:2 33.4% +$200 Industry standard
1:2.5 28.6% +$350 Excellent — trend traders
1:3 25.1% +$500 Best in class

Break-even Win Rate by R:R

1:0.5
66.7%
Min Win Rate
1:1
50.0%
Min Win Rate
1:1.5
40.0%
Min Win Rate
1:2
33.3%
Min Win Rate
1:2.5
28.6%
Min Win Rate
1:3
25.0%
Min Win Rate
1:4
20.0%
Min Win Rate
1:5
16.7%
Min Win Rate

What Is a Good Risk Reward Ratio?

A 1:2 risk-reward ratio is the most widely used standard in professional forex trading. It means you risk $1 to make $2 — and you only need to win 34% of trades to break even. Most experienced traders can maintain a 40–55% win rate, making 1:2 reliably profitable over time.

A 1:1 ratio requires winning more than 50% of trades to be profitable after spreads and commissions. This is achievable for high-conviction scalpers but difficult to sustain for swing traders or news traders.

FTMO and most prop firms are designed around 1:1.5 to 1:2 R:R strategies. At 1:2, a trader with a 45% win rate on a $100,000 FTMO account risking 1% per trade ($1,000) generates +$11,000 over 100 trades — well above the 10% profit target needed to pass.

FTMO Challenge Example — 1:2 R:R

Account Size $100,000
Profit Target $10,000 (10%)
Daily Loss Limit $5,000 (5%)
Max Drawdown $10,000 (10%)
Risk Per Trade $1,000 (1%)
R:R Ratio 1:2
Reward Per Win $2,000
Break-even Rate 34%
At 45% Win Rate / 100 Trades +$11,000 net

Now Calculate Your Exact Lot Size

Once you know your R:R ratio and stop loss distance, use the TRADE90 position size calculator to find the exact lot size that keeps your risk within your planned dollar amount.

Position Size Calculator → Pip Value Calculator

Risk Reward Ratio FAQ

What is a good risk reward ratio in forex? +
A 1:2 risk-reward ratio is the professional standard — you risk $1 to make $2. At 1:2, you only need a 34% win rate to break even. For day traders targeting high-probability setups, 1:1.5 is also common. Anything below 1:1 requires a win rate above 50% to be profitable after costs.
How do you calculate risk reward ratio? +
R:R Ratio = Potential Profit ÷ Potential Loss. If your stop loss is 30 pips and take profit is 60 pips, the R:R is 60 ÷ 30 = 1:2. In dollar terms: risking $100 to make $200 is a 1:2 R:R. The calculator above handles both pip-based and dollar inputs.
What win rate do I need for a 1:2 R:R ratio? +
Formula: Break-even win rate = 1 ÷ (1 + R:R ratio) = 1 ÷ 3 = 33.3%. At 40% win rate: 40 wins × $200 = $8,000 profit, 60 losses × $100 = $6,000 loss = net $2,000 profit per 100 trades. The higher your R:R, the less often you need to win.
Is 1:1 risk reward good enough? +
A 1:1 R:R requires a >50% win rate to be profitable after spreads and commissions. Achievable for disciplined scalpers with tight spreads. For most swing traders and funded account traders, 1:1.5 or 1:2 is safer — it provides a larger cushion for losing streaks without failing challenges.
How does FTMO use risk reward ratio? +
FTMO challenges require 10% profit with max 10% drawdown. A 1:2 R:R at 1% risk per trade means each win returns $2,000 on a $100,000 account. At a 45% win rate over 100 trades, this generates $11,000 net — passing the challenge. FTMO traders typically use 1:1.5–1:2 R:R with 0.5%–1% risk per trade.