Measure the quality of a trade setup by comparing what you stand to lose against what you stand to gain, expressed as a clean risk to reward ratio. Enter your entry price, your stop loss and your target, and the tool computes the distance to each, the resulting ratio, and the minimum win rate you would need for the setup to break even over many trades. This last number is the one traders forget: a two to one reward to risk setup only needs to win about a third of the time to stay flat, which is why chasing a high win rate matters less than chasing good ratios. It works for longs and shorts as long as the stop and target sit on opposite sides of entry. All calculations run locally in your browser, so your trade plan is never sent to any server.
It divides the distance from entry to target by the distance from entry to stop loss. A ratio of 3 means three units of reward per unit of risk.
It is the win rate needed for a strategy to break even at your ratio. A 2 to 1 reward to risk breaks even at roughly a 33 percent win rate.
A higher reward to risk lets you profit while winning less than half your trades, since each win outweighs each loss.
Measure the quality of a trade setup by comparing what you stand to lose against what you stand to gain, expressed as a clean risk to reward ratio. Enter your entry price, your stop loss and your target, and the tool computes the distance to each, the resulting ratio, and the minimum win rate you would need for the setup to break even over many trades.
Yes. Risk Reward Ratio Calculator is completely free, with no sign-up and no usage limits.
Yes. Risk Reward Ratio Calculator runs in any modern web browser. There is nothing to download or install.
Yes. Risk Reward Ratio Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.