Risk/Reward Calculator
Every planned trade reduced to one ratio, plus the win rate that ratio demands. A 1:3 trade only needs to work a quarter of the time.
Results (live)
Estimates only, not financial advice. All math runs in your browser; nothing you type leaves this page.
How it works
RR = |target − entry| ÷ |entry − stop|
break-even win rate = 1 ÷ (1 + RR)
Worked example
Entry $100, stop $95, target $112: 1:2.4. You break even winning just 29.4% of such trades; everything above that is edge.
FAQ
What is a good risk-reward ratio?
Nothing is universally good; it pairs with win rate. Scalpers profit at 1:1 with 60% wins, trend traders at 1:4 with 30%. The mismatch is what loses money.
Should I skip trades below 1:2?
Only if your real win rate is below ~50%. Know your stats first; this calculator shows the arithmetic they must satisfy.
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Estimates only, not financial, tax or investment advice. Verify numbers against your exchange or a professional before acting.