Risk
Risk / Reward Ratio
Compare potential reward versus risk, including net risk/reward and break-even win rate.
Use this calculator to turn raw price levels into clear decisions. It is built for speed, mobile use, and quick iteration while you plan or review a trade.
Risk
2,000 (4.76%)
Reward
4,000 (9.52%)
Net R/R
1.96
after fees
R/R Ratio
2
Break-even: 33.33%
Tool Guide
Practical explanation, workflow, and pitfalls for this calculator.
A good trade is not just about being right - it is about whether the payoff is worth the downside.
What this calculator does
- Entry price, stop-loss, and take-profit inputs.
- Computes risk (entry to stop distance) and reward (entry to target distance).
- Calculates reward/risk ratio and break-even win rate.
- Helps validate setup quality before entry.
How to use it in a real workflow
- Define your stop where the trade idea is invalidated.
- Set a realistic target based on structure and trend.
- Check the ratio and adjust only if setup logic remains valid.
- Pair with Position Size so dollar risk stays consistent.
Example
- Entry: 42,000
- Stop: 40,000
- Target: 46,000
- Risk: 2,000
- Reward: 4,000
- R/R: 2.0
Common mistakes
- Moving stops closer only to improve the ratio.
- Using unrealistic targets that rarely get hit.
- Ignoring fees and slippage in short-term trading.
FAQ
Common questions about this tool, from basics to usage.
What does break-even win rate mean?Answer
It is the minimum win rate required to avoid losing money at your current reward/risk profile before additional frictions.
Should I optimize for the highest R/R only?Answer
No. Very high ratios can come from unrealistic targets. Use achievable targets and consistent execution.
Can I use this for long and short trades?Answer
Yes. The same reward/risk logic applies to both directions.
Why this calculator matters
Practical benefits for real trading workflows.
- Translate your plan into concrete numbers before entering a trade.
- Keep risk consistent across different assets and timeframes.
- Evaluate performance quickly after exits or partial fills.
Combine this tool with Position Size and ROI to build a complete pre- and post-trade checklist.
Related Tools
Keep exploring the suite.
Position Size
Convert account risk and stop-loss distance into a precise, executable position size.
Margin & Leverage
Estimate notional exposure, required margin, and leverage impact before entering a trade.
Liquidation Price
Estimate liquidation levels and distance-to-liquidation from leverage and maintenance margin assumptions.
Disclaimer
Educational use only. Always verify independently.
This calculator is provided for educational purposes only. Outputs are illustrative estimates based on the inputs you provide and do not account for all real-world factors (including, but not limited to, fees, spreads, slippage, funding, taxes, and execution). Do not rely on these results as financial advice. Always verify calculations independently and consult a qualified professional as needed.