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.