Risk/Reward Calculator
Calculate the risk-to-reward ratio for a trade setup.
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About this tool
Enter your entry, stop-loss, and take-profit prices to calculate the risk-to-reward ratio for a potential trade.
How to use
- Enter entry price, stop-loss price, and take-profit price.
- View the calculated risk-to-reward ratio.
- Adjust targets to find a favorable ratio before entering a trade.
FAQ
What's considered a good risk-reward ratio?
Many traders look for at least 1:2 (risking $1 to potentially make $2), though the ideal ratio depends on your win rate and strategy.
How is it calculated?
Risk/reward = (take-profit price − entry price) / (entry price − stop-loss price) for a long position, inverted for a short.
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