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

  1. Enter entry price, stop-loss price, and take-profit price.
  2. View the calculated risk-to-reward ratio.
  3. 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.