Risk Reward Ratio Calculator

Check whether a trade is worth taking before you enter.

Risk : reward—
Breakeven win rate—
Max loss—
Potential profit—

⚠️ For education only — not investment advice or a recommendation to buy or sell any security. Trading involves risk of loss. Verify charges and prices with your broker.

How to use the Risk Reward Ratio Calculator

  1. Enter entry, stop-loss and target prices.
  2. Optionally enter quantity to see the rupee/dollar amounts.
  3. Read the ratio and the minimum win rate needed to break even.

Formula

Risk = |Entry − Stop|  ·  Reward = |Target − Entry|  ·  R:R = Reward ÷ Risk

Breakeven win rate = 1 ÷ (1 + R:R)

With a 1:2 ratio you only need to win 33.3% of trades to break even (before costs).

Frequently asked questions

What is a good risk-reward ratio?

Many traders look for at least 1:2. But the ratio only matters together with your real win rate — a 1:3 setup that almost never hits the target is not better than a reliable 1:1.5.

Guides & articles

📈 Stocks Risk-Reward Ratio Explained With Examples What the risk-reward ratio is, how to calculate it from entry, stop-loss and target, the win rate it requires, and why it matters for every trade you plan.

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