What reward-to-risk really tells you
The reward-to-risk ratio compares how much you stand to gain against how much you'll lose if you're wrong. A 3:1 setup means you make three dollars for every one you risk — so you can be wrong the majority of the time and still come out ahead. This calculator computes R:R from your entry, stop-loss and take-profit prices, shows the dollar profit and loss on each side, and plots them on a visual trade map so the asymmetry is obvious at a glance.
Break-even win rate: the number most traders ignore
Every reward-to-risk ratio has a matching break-even win rate — the percentage of trades you must win just to avoid losing money. At 1:1 you need to win over half your trades; at 3:1 you only need to win about 25%. The formula is break-even win rate = 1 ÷ (1 + R:R). Knowing this number stops you chasing high win rates for their own sake and refocuses you on setups where the maths is in your favour.
Expectancy is what actually grows an account
Expectancy is your average profit per trade across many trades, blending your win rate with your reward-to-risk. It's positive only when win rate × reward exceeds loss rate × risk. This calculator shows expectancy in both R multiples and dollars at whatever win rate you enter, so you can answer the only question that matters long-term: does this strategy make money if I repeat it a hundred times?
Scaling out with multiple targets
Many traders don't exit all at once — they close part of the position at a first target and let the rest run. Add up to four take-profit levels with a percentage allocation each, and the calculator blends them into a single realistic reward-to-risk figure while still showing the individual R multiple of every target. This models real trade management far better than a single exit price.
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- Up to 4 scaled take-profit targets
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- Break-even win rate and expectancy
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- Visual entry / stop / target trade map
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- Long and short with per-target R multiples
