Free Tool

Risk/Reward Calculator

Calculate your risk-reward ratio and potential profit or loss before entering a trade.

Calculator

Enter entry, stop loss, take profit, and position details.

Risk/Reward ratio

1 : 2.0

Risk (if stopped out)

-$5.00

Reward (if target hit)

+$10.00

Why risk-reward matters

A positive risk-reward ratio improves long-term profitability.

Aim for at least 1:1.5 or 1:2 risk-reward. Even with a 50% win rate, a 1:2 ratio is profitable. A 1:1 ratio requires a 55%+ win rate to break even. Always know your risk before entering a trade.