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-Reward Ratio
- –
- Risk Distance
- –
- Reward Distance
- –
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
- Enter the entry price and stop loss.
- Enter the target take profit price.
- 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.