Gold Risk-Reward Calculator
Is this trade worth taking? Enter your entry, stop-loss, take-profit and size — get the dollar risk, potential reward, R:R ratio, R-multiple and breakeven win rate for any XAUUSD trade plan.
Risk first, reward second. Professional traders decide what they can lose before they think about profit. If the R:R is below 1:1.5, most skip the trade. Need the right size for your risk? Use the Lot Size Calculator →
How the calculation works
Dollar Risk = |Entry − Stop-Loss| × Lots × Contract Size
Dollar Reward = |Take-Profit − Entry| × Lots × Contract Size
R:R = Reward Distance : Risk Distance · R-Multiple = Reward ÷ Risk
Breakeven Win Rate = Risk ÷ (Risk + Reward) × 100 — the win % needed to break even at this R:R
Worked example
Long 1.0 lot, 100 oz: entry $4,000, SL $3,990, TP $4,020 → risk $1,000, reward $2,000, R:R 1:2, breakeven 33.3%
Assumptions & limitations
- Direction logic is enforced: Long needs SL < entry < TP; Short needs TP < entry < SL. Anything else is rejected with a specific message.
- 100 oz is a preset, not a rule. Check your broker's contract specification.
- R:R below 1:1 only warns — the math still shows; the decision is yours.
- Spread, commission, swap and slippage are not included.
- No live price feed. Enter your planned levels manually.
- Results are educational only — not financial advice.
Frequently Asked Questions
What is a good Risk:Reward ratio for gold?
Most traders demand at least 1:1.5, many want 1:2 or better. Below 1:1 you must win most trades just to break even — the calculator shows your exact breakeven win rate.
What is R-multiple?
Your reward expressed in units of risk. A 2R trade makes twice what it risks. Professionals journal R-multiples instead of dollars because R is comparable across account sizes.
How is breakeven win rate calculated?
Risk ÷ (Risk + Reward) × 100. At 1:2 (risk $100, reward $200) you break even winning just 33.3% of trades.
Does lot size change my R:R?
No. Lot size scales the dollar risk and reward equally, so the ratio is unchanged. Size the dollars with the Lot Size Calculator; judge the plan here.
Should I include spread in my stop-loss and take-profit?
Yes, mentally. Enter the prices where your broker will actually fill you. On gold, a 20–35 cent spread meaningfully changes tight R:R plans.
How is this different from the Profit/Loss calculator?
The P/L calculator shows the outcome of an entry→exit move in dollars and pips. This page judges the plan: risk vs reward, the ratio, and the win rate you need — before you enter.