Risk/Reward Calculator
Compare per-share risk (entry to stop) with reward (entry to target) and see the implied break-even win rate for that ratio.
Your Inputs
Risk/Reward Ratio
1:3.00
Excellent
Risk (Loss)
$5.00
5.00%
Reward (Profit)
$15.00
15.00%
Break-even Win Rate
Minimum win rate needed to be profitable
25.00%
Commonly asked Risk/Reward questions
What is break-even win rate?
For a simple fixed payoff model, approximate break-even win rate = 1 / (1 + R:R) where R:R is reward divided by risk.
Long vs short trades?
The calculator uses absolute distances—set entry, stop, and target consistently with your direction.
Is a higher ratio always better?
Not necessarily—wider targets can be hit less often; combine ratio with win rate and expectancy.
Are commissions in the ratio?
Not automatically—subtract expected fees from reward and add to risk for tighter accuracy.
Trailing stops?
This is a static snapshot; trailing exits change realized R over time.
How does this relate to expectancy?
Expectancy blends win rate and average win/loss; R:R is one ingredient in that mix.
Related Calculators
Daily Cumulative P&L
$33,989.51+$32,609.07
Avg Trade: $60.80
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Best Performing
Morning Breakouts
82% Win Rate
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