Risk Reward Ratio Calculator

The risk-reward ratio compares what you stand to lose against what you're aiming to gain on a trade, before you enter it. Professional traders often set a minimum ratio (commonly 1:2 or better) because it changes the win rate you actually need to break even — at 1:2, you can be profitable even if you're right less than half the time, since each win covers two losses.

Enter your planned entry price, stop-loss price, and target price. The calculator finds your risk as the gap between entry and stop-loss, your reward as the gap between entry and target, and expresses reward ÷ risk as a ratio — so you can decide before placing the trade whether the potential payoff justifies what you're risking.

Ratio = (Target − Entry) : (Entry − Stop-loss)