Favorites

Investing & Trading

Risk / Reward Calculator

Enter entry, stop, and target prices to see risk per unit, reward per unit, and break-even win rate.

App view

Inputs

Results

Result Enter values to calculate.
Your result explanation will appear here.

Useful next checks

  • Check the inputs before relying on the result.
  • Try a second scenario to compare outcomes.
  • Read the guide below for context.

Intro

Use this risk / reward calculator to compare entry price, stop-loss price, and target price before a trade.

What this calculator does

The calculator shows risk per unit, reward per unit, risk/reward ratio, and the break-even win rate implied by those levels.

How it works

Risk per unit is the absolute distance between entry and stop. Reward per unit is the absolute distance between target and entry. Risk/reward ratio is reward / risk. Break-even win rate is risk / (risk + reward).

Example calculation

With a 50 entry, 47 stop, and 59 target, risk per unit is 3 and reward per unit is 9. The ratio is 3:1 and the break-even win rate is 25%.

How to use the result

Use the ratio to compare whether a planned target offers enough reward for the defined risk. The calculator does not estimate probability or guarantee execution. It is for education and planning, not financial advice.

Assumptions and limitations

  • It does not include fees, spread, slippage, taxes, or position size.
  • It compares price distances only.
  • It works for long or short planning because it uses absolute price distances.

FAQs

  • A 3:1 result means potential reward is three times the risk per unit.
  • Break-even win rate assumes average wins and losses match the entered levels.
  • Use the position size calculator to turn the risk distance into a trade size.

Related calculators

Frequently asked questions

What does a 3:1 ratio mean?

It means the potential reward is three times the amount at risk before fees, slippage, or taxes.

What is break-even win rate?

It is the win rate needed for the average trade to break even if wins and losses match the entered prices.

Does this include probability?

No. It compares price levels only and does not estimate the chance of reaching them.