Visualize your R:R ratio, see the breakeven win rate you need, and check expected value at different win rates. Enter entry, stop loss, and up to 3 take profit targets.
Visualize your R:R and breakeven win rate
Take Profit Targets
Why Risk-Reward Ratio Matters
A favorable R:R ratio means you can be profitable even with a low win rate. At 1:2, you only need to win 33% of your trades to break even. At 1:3, just 25%. Professional traders focus on R:R and position sizing as the foundation of their edge — not on winning every trade.
The expected value (EV) table shows your average profit per dollar risked at different win rates. A positive EV means the strategy is profitable over time. The higher your R:R, the more room you have for losing streaks while still growing your account.
Input your entry price and stop loss. The calculator auto-detects whether it's a BUY or SELL.
Add up to 3 take profit targets. TP1 is required; TP2 and TP3 are optional for scaled exits.
See R:R ratio, breakeven win rate, and expected value per dollar risked at 40-70% win rates.
Risk-reward ratio is the cornerstone of professional risk management. It measures how much you stand to gain relative to how much you are willing to lose on a single trade. A trade with a 1:2 R:R means your potential profit is twice your potential loss.
The mathematical beauty of R:R is that it directly determines the minimum win rate needed to be profitable. The formula is simple: Breakeven Win Rate = 1 / (1 + R:R) x 100. At 1:1, you need 50%. At 1:2, just 33.3%. At 1:3, only 25%. This means a trader with a modest 40% win rate can still be highly profitable with a 1:2 R:R.
Expected value (EV) combines R:R with your win rate to predict average profit per trade. The formula is: EV = (Win Rate x Reward) - (Loss Rate x Risk). A positive EV means your strategy makes money over time. This calculator shows EV per dollar risked, so you can instantly see whether a setup is worth taking.
For example, at 1:2 R:R with a 50% win rate, your EV is +$0.50 per $1 risked. Over 100 trades risking $100 each, that is $5,000 in expected profit — even though you lost half your trades.
Many traders scale out of positions at multiple levels. Taking partial profits at TP1 locks in gains and reduces risk, while letting the remainder run to TP2 or TP3 maximizes upside. This calculator lets you evaluate the R:R at each target independently, helping you decide how to allocate your position across exit points.
R:R compares possible loss to possible gain. 1:2 means you risk $1 to make $2 — distance to TP divided by distance to stop.
Pros often want 1:1.5–1:3. 1:2 is a solid baseline (breakeven ~33% wins). Scalpers may take 1:1; swing often 1:3+.
Breakeven win rate = 1 / (1 + R:R). 1:1 needs 50%, 1:2 needs 33%, 1:3 needs 25%. Higher R:R leaves more room to be wrong.
No. A rigid 1:2 can put TP where price rarely goes. Match R:R to the setup, volatility, and your real win rate so expectancy stays positive.
1 / (1 + average R:R) × 100, using your real average win size vs average loss — not a hoped-for target.
Average dollars per trade if you repeat the setup: (win rate × avg win) − (loss rate × avg loss). Positive EV is the real edge.
Scaling out lowers blended R:R. Half off at 1:1 and the rest to 1:3 is about 1:2. It locks cash but can cut expectancy vs a full runner.
Neither wins alone. 90% at 1:0.1 still loses; 30% at 1:4 can pay. You need a combo with positive expectancy you can actually execute.
Now that you know your edge, apply it to verified trading signals from professionals with tracked performance. Every signal on SignalFloor includes entry, stop loss, and take profit — ready to analyze with this calculator.
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