Reward-to-risk calculator after costs
Compare the modelled stop loss with profit at the target. See how costs change their ratio and the model’s break-even win rate.
Start with an example
Assume 0.10 lot, pip value 10 USD per lot, commission 7 USD per lot and 1 pip slippage. Loss is 21.70 USD and profit 38.30 USD; the ratio is approximately 1.765 and the modelled break-even win rate approximately 36.17%.
Work through the calculations
Pip value → position size → margin → portfolio risk. Transfer with a button and confirm before applying on the next page.
Data from the previous step
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How the result is calculated
Costs = lots × (commission per lot + slippage × pip value per lot). Loss = stop distance × pip value per lot × lots + costs. Profit = target distance × pip value per lot × lots − costs. Net reward-to-risk ratio = profit / loss. Break-even win rate = loss / (loss + profit) × 100%, when target profit is positive.
Worked example
Assumed 20-pip stop, 40-pip target, 0.10 lot and a 10 USD pip value per lot give a 20 USD loss and 40 USD profit before separate costs. Commission of 7 USD per lot and 1 pip of slippage cost 1.70 USD. After costs: loss 21.70 USD, profit 38.30 USD, ratio approximately 1.765 and break-even win rate 21.70 / 60 ≈ 36.17%.
Specifications and conventions: MetaQuotes: profit in account currency
Inputs before results
Where do I find this calculator’s inputs?
Gather the instrument specification, account settings and your own assumptions. Do not treat default values as your broker’s settings.
Conclusion: “per 1 lot” and “whole position” fields need different numbers. This diagram assumes a linear rate without a minimum fee.
Contract and volume specification
Open the specification for the exact symbol and account type you will use. In MT5: Market Watch → symbol context menu → Specification. Read the contract size per 1 lot and the minimum, maximum and volume step.
100,000 base-currency units per lot is our example assumption. A position of 0.10 lot then represents 10,000 units. A 0.01 step does not establish the minimum or maximum; check all three settings.
Return to the form ↑Pip, point and value per 1 lot
First establish the pip size in price units. Separately check the quoted point and the minimum price increment (tick size). The number of decimal places alone does not give a pip’s cash value.
For our fictional EUR/USD, a 0.0001 pip is ten times the 0.00001 tick. With a 100,000 EUR contract and a USD account, a tick of 1 lot is worth 1 USD and a pip 10 USD. Enter 10 in a per-lot pip field, although a pip of a 0.10-lot position is worth 1 USD. Platform tick values can differ for a profit and a loss; check the direction, currency and current conditions.
Return to the form ↑Execution prices, distances and spread
For position P/L, use actual prices from execution history; for a plan, use your assumptions for the appropriate quote side. A buy opens at ask and closes at bid. A sell opens at bid and closes at ask.
A distance in pips is the price difference divided by pip size. When execution prices already include spread, do not subtract it again. The separate spread in the cost comparison is one modelled cost. Enter slippage as additional adverse execution for the whole trade only when it is not already included in prices or distances.
Return to the form ↑Round-trip commission per 1 lot
Check your account’s fee schedule and actual charges: rate unit, currency, separate opening and closing charges, and any minimum fee.
Fictional 3.50 USD per lot for opening and the same for closing makes 7 USD per lot round trip. For 0.10 lot that is 0.70 USD if the rate is linear with no minimum. Enter 7 in a per-lot field. Enter a separate volume-independent charge in “fixed fee” where the form provides that field.
Return to the form ↑Balance, equity and used margin
Read current account amounts in the same currency. Balance, equity including open P/L, and free margin describe different quantities.
For the loss budget, deliberately choose balance or equity and keep that definition throughout the plan. In the margin calculator, enter current equity and margin already used by other positions. Do not substitute free margin for equity or count the new position’s margin twice.
Return to the form ↑Check field meanings in the platform documentation: MetaQuotes: specification and fees · MetaQuotes: order profit estimate