How to use the Risk Reward Ratio Calculator
- Enter entry, stop-loss and target prices.
- Optionally enter quantity to see the rupee/dollar amounts.
- 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.