Risk Reward Ratio Calculator
This risk reward ratio calculator turns three prices โ your entry, your stop-los
This risk reward ratio calculator turns three prices โ your entry, your stop-los
How to use Risk Reward Ratio Calculator
- Choose long or short, then enter your entry price, stop-loss price, and target price.
- Read the risk/reward ratio, per-share risk and reward, and the break-even win rate you need.
- Optionally add your account size and risk-per-trade percentage to get your position size in shares.
About Risk Reward Ratio Calculator
This risk reward ratio calculator turns three prices โ your entry, your stop-loss, and your target (take-profit) โ into the numbers traders actually plan with. It measures the distance from entry to stop as your risk per share and the distance from entry to target as your reward per share, then expresses the result as a 1 : X ratio. A ratio of 1 : 3, for example, means you stand to make three units for every one unit you put at risk.
It also shows the break-even win rate implied by that ratio: the percentage of trades you would need to win, at this exact risk/reward, just to end up flat before costs. If you fill in an optional account size and a risk-per-trade percentage, it sizes the position for you โ how many shares to buy so that a stopped-out trade loses only the percentage of your account you chose, plus the dollar profit and loss at your target and stop. It handles both long and short trades and validates that your stop and target sit on the correct side of your entry.
Everything runs entirely in your browser with plain arithmetic โ no prices, orders, or account details are sent anywhere, and there is no sign-up. The figures ignore commissions, spreads, slippage, and taxes, and share-based sizing rounds to fractional shares, so treat the output as a planning estimate rather than an exact order ticket.
Frequently asked questions
- How is the risk/reward ratio calculated?
- Risk is the distance from your entry price to your stop-loss, and reward is the distance from your entry to your target. The ratio is reward divided by risk, shown as 1 : X. For a long trade the stop is below entry and the target above; for a short trade it is reversed.
- What is the break-even win rate and why does it matter?
- It is the minimum share of trades you must win, at your current risk/reward, just to break even over many trades. It equals risk / (risk + reward). A 1 : 3 setup only needs about 25% winners to break even, which is why a good ratio can be profitable even with more losses than wins. It excludes fees and slippage.
- How does the position sizing work?
- If you enter an account size and a risk-per-trade percentage, the tool multiplies them to get your dollar risk, then divides that by your risk per share to find how many shares keep a stop-out loss at that percentage. It also shows the position value and the profit and loss at your target and stop.
- Does it work for short trades, options, forex, or crypto?
- Yes for anything with an entry, stop, and target price, including shorts (select Short). The math is the same for forex or crypto โ just enter prices in the same units. For options and futures the 'per share' figures represent per-unit price moves and do not include contract multipliers or premium decay.
- Is my trade data private?
- Yes. All calculations happen locally in your browser using JavaScript. Nothing you type โ prices, account size, or risk percentage โ is uploaded, stored on a server, or shared, and no account is required.
- Why don't the numbers match my broker exactly?
- The calculator uses raw price distances and ignores commissions, bid/ask spread, slippage, financing, and taxes. It also allows fractional shares. Real fills and costs will shift your actual profit, loss, and effective ratio slightly.