STA / Tools / Risk reward calculator in R
Free tools

Risk reward calculator in R

Enter entry, stop and target. See what the target is worth in R and what share of winning trades you need so you do not lose money over time.

1R in price—
1R as a percentage—
The target is worth—
Win rate to break even—
Win rateAverage result per trade
30%—
40%—
50%—
60%—

It is plain arithmetic on trades that all close at the stop or at the target, without fees. It is not a forecast and says nothing about the probability that price reaches the target.

The calculations run only in your browser and no data is sent.

What R is and why it pays to count this way

R is what you lose if price hits the stop. You decide it before you enter, and from then on every result is measured the same way. A trade closed at +2R made twice what it risked, one closed at −1R lost exactly what was planned.

Counting in R frees you from the amount. Whether you risk 50 euros or 500, the question stays the same. How often you win, and how much each win is worth compared with each loss.

The break even win rate

The further the target is compared with the stop, the fewer times you need to win so you do not lose money. With a 2R target winning once in three is enough. With a 0.5R target you need to win twice in three. The calculator does the maths for you with a simple formula, 1 divided by 1 plus the ratio.

There is a catch. A distant target is reached less often, so the ratio alone does not tell you whether a trade is good. You need to look at the ratio together with how often price actually reaches the target.

How to use it

Choose the direction, then write entry, stop and target. The calculator checks that the prices are on the right side and shows you what 1R is worth in price and as a percentage, how many R the target is worth and the minimum win rate. Below you find the average result per trade at four different win rates, handy to see how much the picture changes.

Every STA card starts with entry, stop and target and is measured in R, losses included. If you want to go deeper, read the guide to R in trading.

Frequently asked questions

What is a good risk reward ratio?It depends on how often price reaches the target. A ratio of 3 with the target reached once in ten loses money, a ratio of 1 reached six times in ten makes money. What counts is the combination, not the number on its own.
What does break even win rate mean?It is the minimum share of winning trades needed so you do not lose money over time with that ratio, not counting fees and funding. If you win more often than that, the average result is positive.
Do fees change the calculation?Yes. Fees and funding add to every loss and take something from every win, so in practice the break even win rate is a little higher than the one calculated here.
Telegram channel

STA's cards, including the ones that went wrong

Every card as soon as it closes, with the result and what STA learned from it. It's free and you don't need to sign up.

Follow the channel

See how STA thinks, without risk

A DEMO account with virtual capital and real prices, the same cards as REAL users.

Try DEMO for free →

This tool is for information only and is not investment advice. Trading crypto assets carries a high level of risk, including the loss of all the capital you use. The numerical examples are illustrative.

Keep reading
Sign inTry DEMO