Risk Reward Calculator
Risk Reward Calculator - Evaluate Risk to Reward Ratio Before Trade
Last updated: Sep 16, 2026 | 400K traders search risk reward | Example: Entry 100, SL 95, Target 110 = 1:2 RR, need 33% win rate to breakeven
Formula
Risk = Entry - SL, Reward = Target - Entry, RR = Reward/Risk. Example: Risk 5, Reward 10, RR 1:2. Breakeven = 1/(1+RR) =33% for 1:2.
Risk-to-reward formula for long and short trades
For a long trade, reward/risk = (target − entry) ÷ (entry − stop). For a short trade, reward/risk = (entry − target) ÷ (stop − entry). A 2:1 reward-to-risk ratio has a theoretical breakeven win rate of 1 ÷ (1 + 2) = 33.33% before costs and slippage.
A favorable ratio does not predict whether the target will be reached. Combine it with position sizing, realistic win-rate evidence and transaction costs.
Calculator questions
Are the results guaranteed?
No. Results are mathematical estimates based on your inputs and exclude market uncertainty or provider-specific rules.
Does the calculator save my data?
The calculation runs in your browser; do not enter account numbers or other sensitive personal information.
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From entry, stop-loss and target to required win rate
The calculator compares possible reward with planned risk for long or short trades. A 1:2 risk-reward plan has a theoretical breakeven win rate of about 33.3% before brokerage, taxes, slippage and gaps. A higher ratio is not automatically a better trade because a distant target may be less likely to be reached.
Calculate quantity separately with the position-size calculator, then verify the exit level with the stop-loss calculator.