About the Risk Reward Calculator
Check a trade's risk-to-reward ratio before you place it. Enter the entry price, stop loss and take profit to see the ratio, the distance to each in price and percent, and the share of trades you'd need to win just to break even.
It works for buys and sells, in any market, and can show the money at risk for a given quantity.
How it works
Risk is the distance from the entry to the stop loss and reward the distance from the entry to the take profit. The ratio is reward divided by risk: a trade risking 5 to make 15 is 1:3.
The break-even win rate is risk divided by risk plus reward. At 1:3 you only need to be right 25% of the time to break even, while at 1:1 you need 50%. The direction is read from where the stop is: below the entry is a buy, above it a sell.
Assumptions and limits
- Fees, spreads and slippage aren't included, so the real break-even win rate is slightly higher.
- A good ratio doesn't make a trade likely to reach its target.
- For planning only, not financial advice.
Worked examples
A stock trade
Buy at $100, stop at $95, target $115: risk $5, reward $15, ratio 1:3, break-even win rate 25%.
A forex trade
Buy EUR/USD at 1.0850 with a stop at 1.0800 and a target at 1.0950: 50 pips to risk, 100 to gain, 1:2.
A tight target
Risking 10 to make 5 is 1:0.5 and needs two wins out of three just to break even.
How to use the Risk Reward Calculator
- Enter the entry price. Where you buy or sell.
- Add stop and target. Stop loss and take profit.
- Read the ratio. And the win rate you need.
Frequently asked questions
What is a good risk-reward ratio?
Many traders look for at least 1:2, meaning the possible gain is twice the possible loss. What matters is the ratio together with how often your trades win; neither works alone.
What does break-even win rate mean?
It's the share of trades that must hit their target so that wins cover losses, before fees. For a 1:2 trade it's 33.3%: one win of 2 cancels two losses of 1.
Does it work for short trades?
Yes. Put the stop loss above the entry and the take profit below it, and the trade is treated as a sell. The calculator tells you if the target is on the wrong side.
How do I see the money at risk?
Enter the number of shares, coins or units in Quantity. The risk and reward per unit are multiplied by it to show how much you could lose at the stop and gain at the target.
Why isn't my result matching my platform?
Platforms often include the spread, commission and swap in their numbers. This calculator uses only the prices you enter, so add your costs to the risk side for the most cautious figure.
This tool runs entirely in your browser. What you enter or upload stays on your device and is never sent to our servers.