Source: https://whitepips.com/tools/risk-reward-calculator Summary: Free risk-reward calculator: enter entry, stop and target for the R multiple, the breakeven win rate and the expectancy of your trading. Last updated: 2026-10-28 # Risk-reward calculator Entry, stop and target give the reward-to-risk ratio. From it, the win rate you need just to break even: 1 ÷ (1 + R). At 2R you break even winning one trade in three. - **33.3%** breakeven win rate at 2R - **1 ÷ (1 + R)** the breakeven formula - **0.35R** expectancy at 45% wins and 2R Your figures Entry price Stop loss Take profit Your win rate (optional) _%_ Money at risk (optional) _USD_ Win rate The stop and the target must sit on opposite sides of the entry; the direction follows from where the target is. The result Reward to risk **—** Risk against reward **—** 1 risk — Your win rate against breakeven **—** 0% 100% Direction **—** Breakeven win rate **—** Expectancy per trade **—** Reward in dollars **—** ## How it is calculated R = |target − entry| ÷ |entry − stop| · Breakeven win rate = 1 ÷ (1 + R) · Expectancy = win rate × R − loss rate ### Measure the risk Risk is the distance from entry to stop. Buy EURUSD at 1.10000 with a stop at 1.09800: 20 pips. ### Measure the reward Reward is the distance from entry to target: 1.10400 is 40 pips away. Their ratio, the R multiple, says how many units of risk a winning trade returns: R = 2. ### Find the breakeven and the expectancy The breakeven win rate is 1 ÷ 3 = 33.3%. At a 45% win rate the expectancy is 0.45 × 2 − 0.55 = 0.35R a trade before costs; risking $500 a trade, that is $175 on average, over many trades and never guaranteed on any one. Worked example ### What it means on a $100K Edge 2 Step An evaluation has a target and a floor. On a $100K Edge 2 Step the Phase 1 target is 7.5% ($7,500) with a Max Daily Loss of $4,500 and a Max Loss of $9,000. Positive expectancy is what moves an account toward its target over many trades; the loss limits decide whether it survives the losing runs on the way, which is what the [drawdown calculator](https://whitepips.com/tools/drawdown-calculator) counts. Entry → stop **20 pips** (the risk) Entry → target **40 pips** (the reward, R = 2) Breakeven win rate **33.3%** Expectancy at 45% wins **0.35R** ($175 on $500 at risk) Phase 1 target **$7,500** (7.5%) Max Daily Loss **$4,500** (Max Loss $9,000) The WhitePips rule it meets ### Profit Target Every evaluation has a target and a floor. On a $100K Edge 2 Step the Phase 1 target is 7.5% ($7,500), the Max Daily Loss $4,500 and the Max Loss $9,000; there is no time limit to reach the target. [The rule, explained](https://whitepips.com/rules#rule-cfd-profit-target) For education. The results are arithmetic on the figures you enter; the contract specification, prices and commission on your platform decide real results. Nothing here is financial advice, and trading leveraged products can lose money. ## Risk-reward calculator: questions **What is a good risk-reward ratio?** There is no ratio that is good on its own: it only means something next to a win rate. 1:1 needs better than 50% wins to make money, 1:2 needs better than 33.3%, 1:3 better than 25%, before costs. **How do I calculate breakeven win rate?** Divide 1 by (1 + R). At R = 1.5 the breakeven win rate is 1 ÷ 2.5 = 40%. **Does commission change the maths?** Yes, it lowers every win and deepens every loss by the same amount. On a tight stop, commission is a larger share of the risk, so the real R is a little lower than the chart distance suggests. **What is expectancy?** The average result per trade in units of risk: win rate × R − loss rate. Positive expectancy means a set of trades should come out ahead over a large sample; it does not say anything about the next trade. ## More free tools [Risk **Position size calculator** Lots to trade from your balance, risk per trade and stop loss, set against a plan's daily and max loss. Open the tool](https://whitepips.com/tools/position-size-calculator) [Markets **Pip value calculator** The dollar value of one pip for any lot size, on USD pairs, yen pairs, crosses and gold. Open the tool](https://whitepips.com/tools/pip-value-calculator) [Risk **Drawdown and recovery calculator** The gain that recovers a loss, and how many losing trades in a row a plan's limits allow. Open the tool](https://whitepips.com/tools/drawdown-calculator) Read next [Risk-reward and win rate](https://whitepips.com/blog/risk-reward-and-win-rate) [How to pass a one-step challenge](https://whitepips.com/blog/how-to-pass-a-one-step-challenge) [Position sizing against a loss limit](https://whitepips.com/blog/sizing-against-the-limit) [One step, two step or three step](https://whitepips.com/blog/one-step-two-step-three-step) ## Put the numbers to work Every plan, size and price, with the rules printed before you buy. No time limit on any evaluation. [See the plans](https://whitepips.com/#plans) [Trading calculator](https://whitepips.com/calculator) --- WhitePips provides skill-based trading evaluations on simulated accounts; payouts are real money based on simulated performance. Nothing here is financial advice or a promise of profit, passing an evaluation does not guarantee funding, payouts or income, and trading leveraged products carries significant risk. 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