Risk/Reward Calculator
Calculate your risk-to-reward ratio and break-even win rate.
Risk vs Reward
Risk:Reward
1:2
Potential Profit
$1000
Potential Loss
$500
Break-even Win Rate
33.33%
Trade with funded capital — up to $200K
Frequently Asked Questions
What is a good risk-to-reward ratio?+
A minimum of 1:2 is recommended for prop firm trading. This means for every $1 risked, you aim to make $2. With a 1:2 ratio, you only need to win 33.3% of your trades to break even.
How does risk/reward ratio affect win rate needed?+
The higher your R:R ratio, the lower the win rate you need. At 1:1, you need >50% wins. At 1:2, you need >33%. At 1:3, you need >25%. Our calculator shows the exact break-even win rate for any ratio.
Should I always aim for a high R:R ratio?+
Not necessarily. Very high R:R trades (1:5+) are rare and often have low win rates. Most professional prop firm traders aim for 1:1.5 to 1:3 with a consistent win rate above the break-even threshold.