Enter entry, stop-loss and target to get the risk:reward ratio and the minimum win rate that ratio needs to break even.
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The risk-reward ratio compares what you stand to lose (entry to stop) with what you plan to make (entry to target). It matters because it sets the win rate you need just to break even:
At 1:1 you must win 50% of trades to stay flat. At 1:2 only 33.4%. At 1:3, a mere 25% win rate breaks even — you can be wrong three times out of four and still not lose money. This is why many profitable traders lose more often than they win.
Use the ratio as a filter: if a setup can't offer at least 1:1.5 to a realistic target, most traders are better off skipping it.
Stop calculating trade-by-trade. TradeDiary imports your trades from Zerodha, Groww, Upstox, Dhan & more, and tracks these numbers across your whole history.
Start Free — No Credit Card →1:2 or better is the common benchmark for swing trades — it breaks even at just a 33% win rate. Scalpers may accept 1:1 with high win rates. Below 1:1 you need to win more than half your trades just to stay flat, which is hard to sustain.
Only if your verified win rate genuinely exceeds the break-even rate this calculator shows — for 1:0.5 that means winning more than 67% of the time. Most traders overestimate their win rate; a journal tells you the truth.
No. Planned RR uses your target; realised RR (the R-multiple) uses your actual exit. Comparing the two across many trades shows whether you cut winners early — one of the most common leaks.