Risk/Reward Ratio Calculator
Compare an entered stop and target for a hypothetical long or short scenario, before costs and execution differences.
Input-based scenario
Free, no sign-up, nothing leaves your browser — all math runs locally.
Informational scenario only, not investment or risk advice. Outputs depend on your inputs and may not reflect fees, slippage, gaps, taxes, or provider-specific rules.
What the risk/reward equation measures
The risk/reward ratio compares the entered stop distance with the entered target distance. Its associated break-even win rate is a mathematical threshold under simplified assumptions: each loss equals the entered risk, each win equals the entered reward, and costs or execution differences are zero.
Under those assumptions, 1:1 corresponds to 50%, 1:2 to about 33%, and 1:3 to 25%. Fees, slippage, gaps, partial exits, uneven losses, missed targets, and changing position size can move the realized threshold.
Planned and realized ratios can differ
A planned target and stop describe a scenario, not the eventual fill sequence. Comparing planned and realized R-multiples across reconciled records can show whether exits, gaps, costs, or missing data explain the difference. TradeInsights can calculate realized R when the imported record contains the required fields.
Frequently asked questions
What is a good risk/reward ratio?
There is no universal good ratio. The ratio must be interpreted with the observed win rate, costs, execution differences, sample size, and the way wins and losses are distributed. This calculator does not recommend a target or stop.
What's the difference between R/R and R-multiple?
They're two views of the same thing. Risk/reward is expressed as a ratio (1:2); the R-multiple expresses the outcome in units of risk (a trade that hits a 1:2 target is a +2R win). Logging results in R lets you compare trades of different sizes on one scale.
How is break-even win rate calculated?
Break-even win rate = 1 ÷ (1 + reward/risk). It is the mathematical threshold at which equal-sized wins and losses offset each other under the entered ratio, before costs, slippage, gaps, taxes, and variation in outcomes.
Does it work for short trades?
Yes — switch the direction toggle to Short and the tool measures reward as entry minus target and risk as stop minus entry, with validation to catch flipped prices.
Why track realized vs. planned R/R?
The comparison can reveal whether fills, partial exits, costs, gaps, or execution choices changed the planned scenario. TradeInsights can calculate realized R when the imported record contains the required entry, exit, and risk fields.
More free tools & resources
Compare planned and realized trade evidence
TradeInsights links available entry, exit, risk, and journal context so you can inspect why a realized R-multiple differed from the plan.
The free diagnostic stores up to 30 trades and builds First Value from qualifying imported history.