Free Forex Profit & Risk/Reward Calculator: Know Your Numbers Before You Enter

Before entering any trade you should know three numbers cold: how much you lose if wrong, how much you make if right, and whether the ratio between them is worth taking. This calculator gives you all three in seconds.

.fxrr{font-family:inherit;max-width:560px;margin:20px 0;padding:20px;border:1px solid #ddd;border-radius:10px;background:#fafafa} .fxrr label{display:block;font-weight:600;margin:12px 0 4px} .fxrr select,.fxrr input{width:100%;padding:8px;border:1px solid #ccc;border-radius:6px;font-size:15px;box-sizing:border-box} .fxrr-row{display:flex;gap:10px}.fxrr-row>div{flex:1} .fxrr .fxrr-out{margin-top:16px;padding:14px;background:#4a2e6b;color:#fff;border-radius:8px;text-align:center} .fxrr .fxrr-big{font-size:26px;font-weight:700} .fxrr .fxrr-cols{display:flex;justify-content:space-around;margin-top:8px;font-size:14px} .fxrr .fxrr-note{font-size:12px;color:#888;margin-top:10px}(function(){ var R={EURUSD:{ps:0.0001,pv:10,c:'USD'},GBPUSD:{ps:0.0001,pv:10,c:'USD'},AUDUSD:{ps:0.0001,pv:10,c:'USD'},NZDUSD:{ps:0.0001,pv:10,c:'USD'},USDJPY:{ps:0.01,pv:1000,c:'JPY'},USDCHF:{ps:0.0001,pv:10,c:'CHF'},USDCAD:{ps:0.0001,pv:10,c:'CAD'},EURGBP:{ps:0.0001,pv:10,c:'GBP'},XAUUSD:{ps:0.01,pv:1,c:'USD'}}; var toUSD={USD:1,JPY:1/150,CHF:1/0.88,CAD:1/1.36,GBP:1.27,EUR:1.08}; function calc(){ var p=document.getElementById('fxrr-pair').value,d=R[p], dir=document.getElementById('fxrr-dir').value, e=parseFloat(document.getElementById('fxrr-entry').value)||0, s=parseFloat(document.getElementById('fxrr-sl').value)||0, t=parseFloat(document.getElementById('fxrr-tp').value)||0, l=parseFloat(document.getElementById('fxrr-lots').value)||0, a=document.getElementById('fxsc-ccy')?document.getElementById('fxrr-ccy').value:'USD'; a=document.getElementById('fxrr-ccy').value; var sym=a==='EUR'?'\u20ac':'$'; var riskPips=Math.abs(e-s)/d.ps, rewPips=Math.abs(t-e)/d.ps; if(dir==='buy'&&(s>=e||t<=e)||dir==='sell'&&(s=e)){ document.getElementById('fxrr-rr').textContent='Check levels'; document.getElementById('fxrr-risk').textContent='';document.getElementById('fxrr-rew').textContent='';document.getElementById('fxrr-pips').textContent='For a '+dir+': stop must be '+(dir==='buy'?'below':'above')+' entry, target '+(dir==='buy'?'above':'below')+'.'; return;} var pipAcct=d.pv*toUSD[d.c]/(a==='EUR'?1.08:1); var riskAmt=riskPips*pipAcct*l, rewAmt=rewPips*pipAcct*l; var rr=riskPips>0?rewPips/riskPips:0; document.getElementById('fxrr-rr').textContent='1 : '+rr.toFixed(2); document.getElementById('fxrr-risk').textContent='Risk: '+sym+riskAmt.toFixed(2); document.getElementById('fxrr-rew').textContent='Reward: '+sym+rewAmt.toFixed(2); document.getElementById('fxrr-pips').textContent='Stop: '+riskPips.toFixed(1)+' pips | Target: '+rewPips.toFixed(1)+' pips | Breakeven win rate: '+(100/(1+rr)).toFixed(0)+'%'; } ['fxrr-entry','fxrr-sl','fxrr-tp','fxrr-lots'].forEach(function(id){document.getElementById(id).oninput=calc;}); ['fxrr-pair','fxrr-dir','fxrr-ccy'].forEach(function(id){document.getElementById(id).onchange=calc;}); calc(); })();

How to read the result

The headline number is the risk-to-reward ratio: 1:2 means you stand to make twice what you risk. The calculator also shows your breakeven win rate — the percentage of winning trades you need just to stay flat. At 1:1 you must win more than 50% of trades; at 1:3, only 25%. This single insight explains why profitable traders can be wrong most of the time.

A worked example on gold

You buy XAU/USD at 4,350, stop at 4,325 (250 pips at the $0.01 convention), target 4,425 (750 pips), with 0.10 lots. Risk = 250 × $1 × 0.10 = $25; reward = $75; ratio 1:3; breakeven win rate 25%. Note how a "small" gold stop is still 250 pips — which is why position sizing on gold must be computed, never guessed.

Why R:R alone isn't enough

A 1:5 ratio is worthless if price never reaches the target. Ratios must match the market's actual volatility: demanding 1:4 in a week where gold ranges $60 means your target sits outside the probable move. This is also the most common flaw in poorly designed Expert Advisors — huge advertised reward ratios that backtests never deliver. Before trusting any EA's numbers, backtest it yourself and compare the real average win/loss ratio against the marketing.

FAQ

What's a good risk-to-reward ratio? There's no universal answer — it depends on your win rate. A strategy winning 60% of trades is profitable even at 1:0.8; one winning 30% needs at least 1:2.4. Compute the breakeven win rate above, then compare it honestly with your track record.

Should I include the spread? For precision, yes: add the spread to your stop distance. On tight stops it's material — a 2-pip spread on a 15-pip stop inflates real risk by 13%.

Why does the calculator say "Check levels"? Because for a buy, the stop must sit below entry and the target above (reversed for a sell). If the levels violate that logic, the trade as entered doesn't exist.

Does this replace a trading journal? No — it tells you what a trade should make or lose. A journal tells you what your trades actually did. You need both.

Trading forex and gold on margin carries a high level of risk. This tool is educational and does not constitute investment advice.