Risk-Reward Ratio Calculator

Enter entry, stop loss and take profit to compute the risk-reward ratio (R:R) and both price distances.

Results

Fill in the inputs and click Calculate.

Risk disclaimer

This calculator provides estimates for informational purposes only and is not financial advice. Slippage and fees affect real fills.

What is the risk-reward ratio?

R:R = (Take Profit − Entry) ÷ (Entry − Stop). It expresses potential reward relative to potential risk.

Plans usually fix a stop first, then aim for at least 1:1.5 or 1:2. This tool does not measure win rate.

How to use

  1. Enter the entry price and stop loss.
  2. Enter the target take profit price.
  3. Click Calculate to see the R:R and both distances.

Formula

  • Risk Distance = |Entry − Stop|
  • Reward Distance = |Take Profit − Entry|
  • R:R = Reward Distance ÷ Risk Distance

Example

Entry 20,000, stop 19,500 (risk 500), take profit 21,500 (reward 1,500): R:R = 3.

Moving the target down to 20,750 gives an R:R of only 1.5.

FAQ

Is a higher R:R always better?

Higher R:R is attractive per trade but usually pairs with a lower hit rate, so pair it with your win rate.

How about shorts?

For shorts the stop sits above entry and the target below; the distances and ratio work the same.