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Tools / Risk reward calculator

Risk reward calculator

Set the entry, the stop loss and the take profit. See the ratio, how much you could make and lose, and the hit rate that makes the trade worth taking.

FREE TOOL

Is the trade worth taking?

Set entry, stop and target. See the ratio, the position size, what you could make and lose, and the win rate you need to break even.

  • Ratio, size and potential reward
  • Break-even win rate
  • Expected value if you add your win rate

▶ Free lesson: what is R in trading

Direction

How it works

Reward to risk = |target − entry| ÷ |entry − stop|
Break-even win rate = 1 ÷ (1 + ratio)
Expected value (R) = win rate × ratio − (1 − win rate)

A 1:3 ratio breaks even at a 25% win rate. A 1:1 ratio needs more than 50%. The ratio alone says nothing about whether the trade is good: it has to be read with how often your setup actually reaches the target. Fees and slippage push the real break-even higher.

Position size follows from the amount you risk and the stop distance. The position size calculator adds leverage, fees and liquidation.

Questions people ask

How do you calculate risk reward ratio for crypto?

Divide the distance from entry to take profit by the distance from entry to stop loss. Entry 60,000, stop 58,800 and target 63,600 gives 3,600 ÷ 1,200 = 1:3. The calculator also gives the position size for the amount you risk.

What is a good risk reward ratio?

There is no universal number. A lower ratio can work with a high win rate and a higher ratio with a low one. What matters is the combination, measured on your own trades.

How do I calculate risk reward?

Divide the distance from entry to target by the distance from entry to stop. Entry 100, stop 98, target 106 gives 6 ÷ 2 = 1:3.

What win rate do I need for a 1:2 ratio?

More than one in three: 1 ÷ (1 + 2) = 33.3%, before fees and slippage.