Risk
Risk / Reward Ratio
Measure trade efficiency with a clean risk/reward snapshot.
Use this calculator to turn raw price levels into clear decisions. It is built for speed, mobile use, and quick iteration while you plan or review a trade.
Risk
2,000 (4.76%)
Reward
4,000 (9.52%)
Net R/R
1.96
after fees
R/R Ratio
2
Break-even: 33.33%
FAQ
Common questions about this tool, from basics to usage.
What does the risk/reward ratio mean?Answer
It compares how much you could lose if the stop is hit with how much you could gain if the target is reached. Higher ratios mean more reward per unit of risk.
Which inputs do I need?Answer
You need an entry price, a stop price, and a target price. The tool uses those distances to compute the ratio.
Does the ratio include fees or slippage?Answer
No, it is a clean price-based ratio. Add a buffer to your target or stop if you want to account for fees or slippage.
How it works
This calculator compares the distance from entry to stop (risk) with the distance from entry to target (reward). Use it to validate that your trade setup offers a favorable payoff relative to the downside, and adjust targets until the ratio fits your plan.
Example
Entry 42,000, stop 40,000, target 46,000 means risk 2,000 and reward 4,000. That equals a 2.0 R/R ratio before fees.
Why this calculator matters
Practical benefits for real trading workflows.
- Translate your plan into concrete numbers before entering a trade.
- Keep risk consistent across different assets and timeframes.
- Evaluate performance quickly after exits or partial fills.
Combine this tool with Position Size and ROI to build a complete pre- and post-trade checklist.
Related Tools
Keep exploring the suite.
Disclaimer
Educational use only. Always verify independently.
This calculator is provided for educational purposes only. Outputs are illustrative estimates based on the inputs you provide and do not account for all real-world factors (including, but not limited to, fees, spreads, slippage, funding, taxes, and execution). Do not rely on these results as financial advice. Always verify calculations independently and consult a qualified professional as needed.