Risk reward ratio calculator
Before entering a trade, compare what you could make with what you could lose. The direction is detected from where the stop and target sit.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter entry price, stop-loss price and target price.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Risk = |entry - stop|. Reward = |target - entry|. Ratio = reward ÷ risk. Break-even win rate = risk ÷ (risk + reward) × 100.
Example
Inputs: Entry price = 50, Stop-loss price = 48, Target price = 56. Result: Reward per unit of risk: 3; Ratio: 1 : 3; Risk per unit: 2.
Limits and caveats
- Commissions and slippage are not included.
- The ratio alone is not enough; the chance of hitting the target before the stop decides profitability.
Questions about this tool
What does 1 : 3 mean?
You risk one unit to make three. Losing three trades and winning one at this ratio leaves you about even before commissions.
What is the break-even win rate?
The share of trades that must win so you do not lose overall. At 1 : 3, winning 25% of trades is enough.
Does it work for forex and gold?
Yes, it only uses prices, so it works in any market.