Risk/Reward Ratio Calculator

Before you take any trade, the risk/reward ratio tells you how much you stand to gain for every dollar you risk. This free calculator compares your entry, stop-loss and take-profit levels and gives you the ratio instantly, plus the win rate you'd need just to break even.

Calculate Your Risk/Reward Ratio

How This Calculator Works

The calculator measures the distance between your entry and your stop-loss (your risk) and the distance between your entry and your take-profit (your reward), then expresses reward as a multiple of risk. A 1:3 ratio means you stand to make three times what you're risking if the trade hits target. The calculator also shows the win rate you'd need just to break even at that ratio — useful for judging whether a setup is worth taking even before you think about probability.

Why Risk/Reward Ratio Matters

A trader who only wins 40% of the time can still be profitable with a 1:2 or better risk/reward ratio, while a trader who wins 70% of the time can still lose money with a poor ratio. Checking the ratio before entering a trade — rather than after — keeps you from taking setups where the potential reward doesn't justify the risk, regardless of how confident you feel about the trade.

Frequently Asked Questions

What's a good risk/reward ratio? Most traders aim for at least 1:2 (risking $1 to make $2), though the right minimum depends on your win rate and strategy.

Does this work for crypto and stocks? Yes — enter prices in whatever currency or quote asset you're trading; the ratio is unit-agnostic.

How is this different from the Position Size Calculator? This tool tells you whether a trade is worth taking based on its risk/reward profile; the Position Size Calculator tells you how many units to trade once you've decided to take it.