Risk Reward Calculator
Calculate the risk-to-reward ratio of a trade from entry, stop-loss and target prices, plus the breakeven win rate and money at risk per position.
About the Risk Reward Calculator
Before entering any trade, professionals check one number: how much they stand to lose against how much they stand to gain. This risk reward calculator takes your entry price, stop-loss and target price and instantly computes the risk per unit (entry to stop), the reward per unit (entry to target), and the ratio in the standard 1 : R form. It detects whether the setup is long or short automatically from where your stop and target sit.
The calculator also shows the breakeven win rate — the minimum percentage of trades like this you must win just to avoid losing money, calculated as risk ÷ (risk + reward). A 1:3 setup only needs a 25% win rate to break even, while a 1:1 setup needs 50%. Add your position size and it converts everything to money: total amount at risk and total potential reward.
Stock traders on PSX or NSE, forex and crypto traders, and anyone learning position sizing uses this check before every order. Many trading plans require a minimum ratio of 1:2 before a setup qualifies. All calculations stay in your browser.
How to Use the Risk Reward Calculator
- 1Enter your planned entry price.
- 2Enter the stop-loss price and the target (take-profit) price.
- 3Optionally add your position size in shares or units.
- 4Read the risk, reward, 1 : R ratio and breakeven win rate instantly.
Frequently Asked Questions
How do I calculate a risk-reward ratio with an example?
Risk = entry − stop, reward = target − entry (absolute values). Buying at 100 with a stop at 95 and target at 115 risks 5 to make 15, a ratio of 1:3. The calculator formats it as 1 : 3.0 and flags the trade as long.
What is a good risk-reward ratio?
Most trading plans require at least 1:2, and many swing traders look for 1:3. The higher the ratio, the lower the win rate you need: at 1:2 you break even winning 33.3% of trades, at 1:3 just 25%. A ratio below 1:1 means you risk more than you can gain.
What is the breakeven win rate?
It is risk ÷ (risk + reward) × 100 — the minimum share of winning trades needed for the strategy to not lose money. Risking 5 to make 15 gives 5 ÷ 20 = 25%. If your historical win rate is above the breakeven rate for your typical setup, the strategy has positive expectancy.
How does the calculator know if my trade is long or short?
From the geometry of your prices. Target above entry with stop below means long; target below entry with stop above means short. If both stop and target sit on the same side of the entry, the setup is invalid and the calculator asks you to check the prices.
How much money am I actually risking per trade?
Risk per unit × position size. Risking 5 per share on 200 shares puts 1,000 on the line. A common rule caps this at 1–2% of your account: with a 100,000 account and a 5-per-share risk, that rule allows at most 200–400 shares.