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Risk Reward Calculator for Trading

Risk-to-reward from entry, stop and target, the target for a 1:2 or 1:3 trade, and the win rate you need to break even.

A stop below the entry means a long (buy) trade; above it, a short.

Trade
Leave empty to get a target from the ratio below
: 1
2 means a 1 : 2 trade
%
For the expectancy figure
units
Shares, coins or lot size × lots
Charges and forex pips
₹
Brokerage, taxes and fees for the buy and the sell
0.0001 for most pairs, 0.01 for yen pairs
Risk : reward1 : 3.00Long · risk 30.00 to make 90.00 a unit
1,560.00Target for 1 : 2
25.0%Break-even win rate
2.00%Stop distance from entry
6.00%Target distance from entry
₹3,000.00Loss at the stop (100 units)
₹9,000.00Profit at the target
₹1,800.00Expected per trade at 40.0% wins
+0.60RExpectancy in R multiples

Targets for other ratios

Risk : rewardTarget priceWin rate to break evenProfit at target
1 : 11,530.0050.0%₹3,000.00
1 : 1.51,545.0040.0%₹4,500.00
1 : 2 (yours)1,560.0033.3%₹6,000.00
1 : 3 (this trade)1,590.0025.0%₹9,000.00
1 : 41,620.0020.0%₹12,000.00
1 : 51,650.0016.7%₹15,000.00

How it was worked out

  1. Risk = |1,500.00 − 1,470.00| = 30.00 a unit
  2. Reward = |1,590.00 − 1,500.00| = 90.00 a unit
  3. Ratio = 90.00 ÷ 30.00 = 3 → 1 : 3.00
  4. Break-even win rate = 1 ÷ (1 + 3) = 25.00%
  5. Target for 1 : 2 = 1,500.00 + 2 × 30.00 = 1,560.00

Calculations only — not investment advice; markets carry risk. A good ratio does not make a good trade: what matters is the ratio together with how often the set-up actually wins. Stops can fill worse than their price in fast markets or gaps.

Runs entirely in your browser. Nothing you enter or upload is sent to a server.

A risk reward calculator for every trade you plan

Before a trade, two prices decide whether it is worth taking: where you will get out if you are wrong (the stop-loss) and where you will take profit (the target). This risk reward calculator turns your entry, stop and target into the risk-to-reward ratio, the win rate you need just to break even, and — if you know roughly how often the set-up works — the expected profit per trade.

Working the other way, enter the ratio you want (1 : 2, 1 : 3…) and it gives the target price, with a table of targets for other ratios. Add a quantity to see the money at stake, round-trip charges to see how costs move the break-even point, and a pip size to read forex distances in pips. It works for shares, futures, forex and crypto, long or short.

How to use the Risk-Reward Ratio Calculator

  1. Enter the entry price and the stop-loss; a stop below the entry is read as a long trade, above it as a short.
  2. Enter your target price, or leave it empty and set the reward : risk you want.
  3. Optionally add your win rate and the quantity to see the money at risk and the expected result per trade.
  4. Open Charges and forex pips to include round-trip costs or show distances in pips.
  5. Press Use the target for my ratio to put the suggested target into the trade, then copy the result.

Risk-Reward Ratio Calculator features

Ratio and break-even win rate

Risk : reward as 1 : R and the minimum win rate, 1 ÷ (1 + R), that keeps you at zero.

Targets from a ratio

The target price for 1 : 1 up to 1 : 5 and for the ratio you choose, with one click to use it.

Expectancy

Average profit per trade and in R multiples from your win rate.

Charges included

Round-trip costs reduce the winner and enlarge the loser, raising the break-even win rate.

Trade map

A proportional picture of the reward zone and the risk zone around your entry.

Risk-reward formulas

For a long trade, risk = entry − stop and reward = target − entry; for a short, both are reversed. The ratio is R = reward ÷ risk, written 1 : R. The break-even win rate is 1 ÷ (1 + R): at 1 : 1 you must win 50% of trades, at 1 : 2 33.3%, at 1 : 3 25%. With charges c per round trip, a win nets reward − c and a loss costs risk + c, so break-even becomes (risk + c) ÷ (risk + reward). Expectancy is win% × average win − loss% × average loss.

Worked example: buy at ₹1,500 with a stop at ₹1,470 and a target at ₹1,590. Risk is ₹30 a share, reward ₹90: a 1 : 3 trade that breaks even if 25% of such trades win. With 100 shares you risk ₹3,000 to make ₹9,000. If the set-up wins 40% of the time, the average trade makes 0.4 × 9,000 − 0.6 × 3,000 = ₹1,800, or +0.6R. Charges of ₹200 per round trip raise the break-even win rate to 26.7%.

Break-even win rate by ratio

These figures ignore costs; the calculator adds them when you enter a quantity and charges. Size the position so the loss at the stop fits your risk per trade with the position size calculator, and for forex pip values use the forex pip calculator.

Risk : rewardWin rate needed to break even
1 : 0.566.7%
1 : 150.0%
1 : 1.540.0%
1 : 233.3%
1 : 325.0%
1 : 420.0%
1 : 516.7%

Common mistakes

  • Picking a far-away target just to show a 1 : 3 ratio. A target nobody expects price to reach makes the ratio meaningless — use real levels such as pivot points or prior highs.
  • Moving the stop further away during the trade, which quietly changes the ratio you planned.
  • Ignoring charges on small, frequent trades, where costs can be a large share of the reward.

Risk-Reward Ratio Calculator FAQ

How do you calculate the risk-reward ratio?

Divide the distance from entry to target by the distance from entry to stop-loss. Entry 1,500, stop 1,470 and target 1,590 give 90 ÷ 30 = 3, a 1 : 3 risk-reward ratio. The risk reward calculator also gives the break-even win rate.

What is a good risk-reward ratio?

Many traders look for at least 1 : 2, but the right ratio depends on your win rate. A 1 : 1 strategy that wins 60% of the time beats a 1 : 3 strategy that wins 20%.

How do I set a target for a 1 : 2 trade?

Add twice the stop distance to the entry for a long trade (subtract for a short). Entry 1,500 with a stop at 1,470 gives a 1 : 2 target of 1,560.

Does the risk reward calculator work for forex?

Yes. Enter the prices as quoted and set the pip size (0.0001, or 0.01 for yen pairs) under Charges and forex pips to see the stop and target in pips.

What win rate do I need for 1 : 3?

25%, before costs: one winner of 3R pays for three losers of 1R each.

Is this investment advice?

No. It gives calculations only; markets carry risk and stops can be filled at worse prices.

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