The risk to reward ratio (RRR) tells you how many dollars of reward you're targeting for every dollar you're risking. A trader with a 1:3 average risk reward only needs a 30% win rate to break even — this risk reward calculator gives you that number instantly for any forex or XAUUSD trade.
Risk Reward Calculator is part of the free Aurex Trader calculator suite — 23 browser-based tools for gold (XAUUSD) and forex traders. Nothing is installed, no account is required, and every calculation runs locally in your browser.
Formula: Risk : Reward = 1 : (Reward ÷ Risk) Example: risking $100 to make $300 = 1:3 risk-reward. You only need to win 25%+ of your trades to be profitable at this ratio.
1:2 or higher is generally considered the minimum for a sustainable strategy — meaning you target at least $2 in profit for every $1 you risk. Scalpers can profit at 1:1 with high win rates; swing traders often aim for 1:3 or 1:5.
At 1:2 you break even at a 33.4% win rate. At 1:3 you break even at 25%. This is why professional traders obsess over RRR — it lets you be wrong more often than right and still make money.
Yes — the ratio is unitless, so you can enter risk and reward in USD, EUR, PKR, or any currency. Just use the same unit for both.
Not necessarily — RRR should match the setup quality. High-conviction setups can target 1:5 or more; lower-conviction range trades may only offer 1:1.5. Track your average realised RRR (not just planned) to know your true edge.