Risk Reward Ratio Calculator
Compare what a trade can lose against what it can make before you take it.
Method
How it works
Enter the planned entry, stop-loss and target prices. The calculator measures the absolute distance from entry to the stop as risk and from entry to the target as reward.
The primary result shows how many units of potential reward exist for each unit of risk. The percentage figures express both distances relative to the entry price; they do not estimate the probability of either price being reached.
Common questions
Frequently asked questions
What is a good risk-reward ratio?
A ratio is only meaningful alongside the win rate and costs required for a strategy to break even. For example, a 2:1 reward-to-risk ratio needs wins on more than one-third of trades before costs; the calculator does not judge whether a particular setup is suitable.
Does a higher ratio mean the trade is more likely to win?
No. The ratio measures potential reward against potential risk and contains no probability, volatility or market data.
Why does the calculator use absolute price differences?
Absolute differences keep risk and reward distances positive regardless of the order in which the three prices are entered.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.