Risk/Reward Calculator

Divide your potential reward (distance from entry to take-profit) by your potential risk (distance from entry to stop-loss). A trade that can make $300 while risking $100 has a 3:1 ratio. This calculator computes it automatically, including blended ratios across multiple targets.

Many traders require at least 2:1, meaning potential profit is double the potential loss. At 2:1 you only need to win about a third of your trades to break even, giving you a wide margin for being wrong. The right ratio depends on your win rate, use the expectancy tool to check.

It's the minimum percentage of trades you must win to avoid losing money at a given reward-to-risk. It equals 1 ÷ (1 + R:R). At 3:1 it's just 25%; at 1:1 it's over 50%. The calculator shows it for your exact setup.

Expectancy is your average profit per trade over many trades. It's positive when your win rate and reward-to-risk together produce more gains than losses. The tool shows expectancy in both R multiples and dollars at the win rate you enter.

Yes. Add up to four take-profit levels, each with a percentage of the position closed there. The calculator blends them into one realistic reward-to-risk figure and shows the individual R multiple of each target.

Yes. Switch to 'short/sell' and the calculator expects your stop above entry and targets below it, computing risk, reward and expectancy accordingly.

Risk-reward = (target - entry) / (entry - stop). If you enter at $100, stop at $90 and target $130, that is 30/10 = 3, a 1:3 ratio. Enter entry, stop and target to get the ratio and the dollar risk and reward.

Breakeven win rate = 1 / (1 + reward-to-risk). At 1:2 you need about 33%; at 1:3 about 25%. The calculator shows the minimum win rate your ratio implies, so you know if a strategy is viable.

Many traders aim for at least 1:2, meaning the potential reward is twice the risk. Combined with a realistic win rate, that keeps expectancy positive. Use the tool to test different entry, stop and target levels.