Risk/Reward Ratio Calculator

Assess if a trade's potential reward justifies its risk in seconds. This calculator helps you understand where to place stop losses and see if the potential reward justifies the risk.

Financial Disclosure & Educational Use

This risk/reward ratio calculator is provided for educational and illustrative purposes only and should not be used solely as a tool for financial advice or trading/investing decisions. The calculations provided are approximate estimators and should not be relied upon for making actual investment decisions.

Users must conduct their own due diligence and consult with qualified financial professionals before making any trading or investment decisions. Market conditions, volatility, and other factors can significantly impact actual trading results. The creators and operators of this calculator are not liable for any losses or damages resulting from its use.

Position Type

Entry Price

Profit Target

Stop Loss

How to use: Enter your position type (long/short), entry price, profit target, and stop loss. The calculator will show your risk/reward ratio and the minimum win rate needed to be profitable. A 1:2 or higher ratio (risking $1 to make $2+) is generally considered good.