Risk/Reward Calculator

Use our free risk/reward calculator to evaluate potential trades and investments. Enter entry price, stop loss, take profit, and position size to see the risk/reward ratio and breakeven win rate.

Financial

Currency

Entry Price

Stop Loss Price

Take Profit Price

Position Size (units)

Entry Cost (commission/fees)

Formula

The risk/reward ratio helps traders and investors evaluate potential trades by comparing the expected profit (reward) to the potential loss (risk). A good risk/reward ratio is typically 1:2 or better, meaning you risk $1 to make $2.

R:R Ratio = (Take Profit - Entry) Ã— Size / ((Entry - Stop Loss) Ã— Size + Fees)

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the entry price for the trade or investment.
2Enter the stop loss price (maximum acceptable loss).
3Enter the take profit target price.
4Enter position size and any costs to see the full R:R ratio.

Examples

Buy at $100, stop at $95, target $115, 100 units

1.Risk = ($100 - $95) Ã— 100 = $500
2.Reward = ($115 - $100) Ã— 100 = $1,500
3.R:R = $1,500 / $500 = 1:3

Result: 1:3.00

Frequently Asked Questions

A good R:R ratio depends on your strategy. Many traders aim for at least 1:2 (risking $1 to make $2). Higher ratios mean more profit potential but may be harder to achieve.

The breakeven win rate is the percentage of trades you need to win to break even. It is calculated as 1/(1+R:R). For a 1:3 ratio, you only need to win 25% of trades to break even.

Entry costs and commissions increase your total risk, reducing the R:R ratio. Always include fees in your calculation for accurate trade evaluation.

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Risk/Reward Trading Guide

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

A good R:R ratio depends on your strategy. Many traders aim for at least 1:2 (risking $1 to make $2). Higher ratios mean more profit potential but may be harder to achieve.

The breakeven win rate is the percentage of trades you need to win to break even. It is calculated as 1/(1+R:R). For a 1:3 ratio, you only need to win 25% of trades to break even.

Entry costs and commissions increase your total risk, reducing the R:R ratio. Always include fees in your calculation for accurate trade evaluation.

Risk/Reward Calculator

Formula

How It Works

Examples

Buy at $100, stop at $95, target $115, 100 units

Frequently Asked Questions

What is a good risk/reward ratio?

What is breakeven win rate?

How do fees affect the R:R ratio?

Related Calculators

Related Articles

Risk/Reward Calculator

Formula

How It Works

Examples

Buy at $100, stop at $95, target $115, 100 units

Frequently Asked Questions

What is a good risk/reward ratio?

What is breakeven win rate?

How do fees affect the R:R ratio?

Related Calculators

Related Articles