Risk/Reward Ratio Calculator
Score any trade before you take it. Enter your entry, stop-loss, and target to see the risk/reward ratio, the percentage you stand to gain or lose, and the win rate you need just to break even.
Trade levels
Price you plan to buy at
Price you will exit at a loss
Price you plan to take profit
Number of shares, for dollar figures
Risk / reward
- Risk per share
- $5.00
- Reward per share
- $15.00
- Potential gain
- 15.00%
- Potential loss
- -5.00%
- Breakeven win rate
- 25.00%Win rate needed to break even
A higher reward-to-risk ratio lets you be profitable while winning fewer than half your trades. The breakeven win rate is the win percentage at which wins and losses cancel out.
Why risk/reward matters
The risk/reward ratio compares how much you can lose against how much you can make on a trade. It works hand in hand with your win rate: a favorable ratio means you can lose more trades than you win and still come out ahead.
- Risk = | entry price − stop-loss price |
- Reward = | target price − entry price |
- R:R ratio = reward ÷ risk
- Breakeven win rate = 1 ÷ (1 + R:R)
With an entry of $100, a stop at $95, and a target of $115, you risk $5 to make $15 — a 1 : 3 ratio. At that ratio you only need to win 25% of your trades to break even, so a strategy that wins even a third of the time can be comfortably profitable.
Frequently asked questions
How is the risk/reward ratio calculated?+
Risk is the distance from your entry price to your stop-loss. Reward is the distance from your entry to your target. The ratio is reward divided by risk, shown as 1 : X. For example, an entry of $100, stop of $95, and target of $115 gives $5 of risk and $15 of reward, a 1 : 3 ratio.
What is a good risk/reward ratio?+
Many traders look for at least 1 : 2, meaning they aim to make twice what they risk. A 1 : 3 ratio is common for swing setups. The higher the ratio, the lower the win rate you need to stay profitable.
What is the breakeven win rate?+
It is the win percentage at which your winners exactly offset your losers over many trades. It equals 1 ÷ (1 + R:R) as a percentage. A 1 : 3 ratio has a 25% breakeven win rate, so winning more than a quarter of trades at that ratio is profitable before costs.
Do I have to enter a position size?+
No. Position size is optional. Leave it blank to see per-share and percentage figures only, or enter a share count to also see your total dollar risk and dollar reward.