Risk/reward calculator for MT5.
Enter the symbol, the entry, the stop and the target. Get the R:R ratio, the risk and reward in pips and money, the breakeven win rate and the target price for 1:1 to 1:4. Works with forex, gold, indices and crypto, in any account currency.
Buy EURUSD at 1.1000 with a stop at 1.0950 and a target at 1.1100: risk 50 pips, reward 100 pips, 1:2. You need a 33.3% win rate to break even before costs.
Advanced: contract size and digits
| R:R | Target | Breakeven win rate |
|---|---|---|
| 1:1 | - | 50.0% |
| 1:1.5 | - | 40.0% |
| 1:2 | - | 33.3% |
| 1:3 | - | 25.0% |
| 1:4 | - | 20.0% |
Formula: risk = |entry − stop|; reward = |target − entry|; R:R = reward / risk; breakeven win rate = 1 / (1 + R:R). A buy needs stop below entry and target above it; a sell is the other way round. The calculator does not choose the stop: it measures the one you set.
How the risk/reward ratio is calculated
The question is simple: for every unit I risk, how many units can I make? Four steps:
- Risk = entry − stop on a buy (stop − entry on a sell). Entry 1.1000, stop 1.0950: 50 pips.
- Reward = target − entry on a buy (entry − target on a sell). Target 1.1100: 100 pips.
- R:R = reward / risk = 100 / 50 = 1:2.
- Breakeven win rate = 1 / (1 + R:R) = 1 / 3 = 33.3% before costs.
What a 1:2 actually means
1:2 does not mean you win two out of three trades. It means that when you win, you make twice what you lose when you are wrong. If you win 40% of the time with a 1:2 ratio, the expectancy is 0.4 × 2 − 0.6 × 1 = +0.2R per trade. If you win 25%, it is 0.5 − 0.75 = -0.25R.
| R:R | Breakeven win rate | Win rate for +0.2R |
|---|---|---|
| 1:1 | 50.0% | 60.0% |
| 1:1.5 | 40.0% | 48.0% |
| 1:2 | 33.3% | 40.0% |
| 1:3 | 25.0% | 30.0% |
| 1:4 | 20.0% | 24.0% |
Break-even before spread, commission and swap. The costs raise the break-even win rate, so leave a margin above the table.
Risk/reward is not an edge by itself
A 1:4 setup with a 10% win rate loses money. A 1:1 setup with a 60% win rate makes money. The ratio is half of the equation; the win rate is the other half. What matters is the product: expectancy. Use the ratio to compare setups, not to declare one better without the hit rate.
Where to put the stop
The calculator measures the stop you give it; it does not choose it. Put it where the trade idea is wrong (below the swing low on a buy, above the swing high on a sell), then read the R:R. If the ratio is poor at that stop, the trade is poor; moving the stop closer just to improve the ratio usually improves the chance of being stopped out too.
Target for a desired R:R
If you know the risk and want a specific ratio, the target is entry + R × risk on a buy, or entry − R × risk on a sell. The table under the result gives you 1:1, 1:1.5, 1:2, 1:3 and 1:4 for the entry and stop you entered.
What the calculator does not include
Spread, commission, swap and slippage are not in the ratio; they are taken from the reward when the trade closes. On a 50-pip EURUSD trade, a 1-pip spread already reduces the reward by 2%. The money figures use the contract size and the ECB reference rates; your broker's contract and live prices are what count.
FAQ
THE R:R QUESTIONS THAT COME UP MOST, FROM 1:2 TO THE WIN RATE.
What is a good risk/reward ratio?
There is no universal number, but 1:2 or better is the usual starting point: you risk one unit to make two. With 1:2 you need a 33.3% win rate to break even before costs; with 1:1 you need 50%. A high ratio with a very low win rate can still lose money, so judge the pair together.
How do I calculate the risk/reward ratio?
Risk = entry minus stop (the other way round on a sell). Reward = target minus entry. R:R = reward / risk. Buy EURUSD at 1.1000, stop at 1.0950 and target at 1.1100: risk 50 pips, reward 100 pips, R:R 1:2.
What win rate do I need at 1:2?
33.3% before costs: 1 / (1 + 2). At 1:1 it is 50%, at 1:3 it is 25% and at 1:4 it is 20%. Spread, commission and swap raise the real breakeven, so plan a margin above it.
Does a higher R:R mean more profit?
Not by itself. Expectancy = (win rate x reward) minus (loss rate x risk). A 1:4 setup with a 10% win rate loses money; a 1:1 setup with a 60% win rate makes money. R:R is half of the equation, the win rate is the other half.
How do I place the target for 1:3?
Target = entry + 3 x risk on a buy, or entry - 3 x risk on a sell. With entry 1.1000 and stop 1.0950 (50 pips of risk), 1:3 is 1.1150. The calculator shows the price for 1:1, 1:1.5, 1:2, 1:3 and 1:4 automatically.
Does the account currency change the ratio?
No. The R:R ratio is a relation between prices, so it is the same in any currency. What changes is the money at risk and the money at target once the profit is converted to your account currency; the calculator does that with the ECB reference rates.
Is a 1:1 ratio bad?
No, if your win rate is above 50% after costs. A 1:1 system with a 60% win rate has positive expectancy; a 1:3 system with a 20% win rate is around breakeven. The ratio and the win rate have to be read together.
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SignalForge AI is an order-execution tool. We do not provide investment advice. Trading involves risk of loss. This calculator is for information only; your broker's contract specification and live prices are what count.