Risk / Reward Ratio Calculator
Calculate the risk-reward ratio of a trade from entry, stop-loss and take-profit. Free R:R calculator to check a setup before you take it.
Is the trade worth the risk?
The risk/reward ratio compares how much you stand to lose if the trade hits your stop against how much you stand to gain if it hits your target. It is one of the simplest and most powerful filters for a trade idea.
How to use this calculator
Enter your direction, entry price, stop-loss price and take-profit
price. The calculator returns the risk, the reward, and the ratio expressed as
1 : x.
How to read the result
Risk : Reward = Reward (entry to target) Γ· Risk (entry to stop)
A ratio of 1:2 means you risk one unit to make two. Many traders treat 1:2 as a minimum, because it lets them be profitable even when fewer than half of their trades win. A ratio below 1:1 means you are risking more than you aim to make β rarely a good trade on its own.
The ratio is only half the picture
Risk/reward says nothing about how likely each outcome is. A 1:5 setup that almost never reaches target can still lose money over time. Pair the ratio with a realistic read of the probability, and always size the trade with our position size calculator.
For information and education only β not financial advice. Verify figures with your broker before trading. See our editorial policy.