Updated: 2026-02-20
Enter entry, stop-loss, and take-profit prices to calculate your risk-to-reward ratio and break-even win rate before you place the trade. The calculator is free and intentionally simple so you can plan trades quickly without skipping risk logic.
$ tool
Enter entry, stop-loss, and take-profit prices to calculate your risk-to-reward ratio and break-even win rate before you place the trade.
Note
Outputs are only as accurate as your inputs.
stdout
$ risk-reward
2.4 : 1
Enter your inputs before you place the trade, not after. Pre-trade planning is where calculators create value.
Use realistic values based on your actual execution conditions. If you understate slippage, fees, or stop distance, output quality collapses.
Document the result inside your journal so you can compare planned vs realized outcomes during review.
Risk-to-reward (R:R) compares how much you stand to lose if your stop is hit versus how much you gain if your target is hit. A 1:2 ratio means the potential reward is twice the risk.
R:R is not a signal — it is a planning constraint. If you cannot clearly define a stop-loss and take-profit before entry, the trade is not planned. Use the ratio alongside win rate to calculate expectancy: a 1:3 ratio only needs a 25% win rate to break even.
Example: Entry $100, stop $95, target $115. Risk = $5, reward = $15. R:R = 3:1. Break-even win rate = 25%.
Most preventable losses come from skipping one simple calculation when markets move fast. This tool enforces the minimum math needed for disciplined execution.
The value compounds when used consistently. One correct risk decision rarely changes a year; repeated correct decisions usually do.
Tie calculator output to your strategy tags so you can evaluate whether your planning assumptions match live performance.
Use this tool at planning time, then compare outcome quality in weekly review sessions.
If planned and realized values diverge, investigate execution behavior before adjusting strategy logic.
Pair this with one behavior correction each week for compounding improvement.
Using unrealistic inputs because they feel better emotionally.
Changing parameters mid-trade to justify staying in a bad position.
Treating one output as a signal to trade rather than a risk filter.
Yes. The calculator is free and available without signup.
There is no universal 'good' ratio. A 1:1 ratio needs above 50% win rate to profit. A 1:2 ratio only needs 33%. A 1:3 needs 25%. The right ratio depends on your strategy's win rate — use both together to calculate expectancy.
Not by itself. Higher reward targets are often harder to hit and can reduce win rate. A 1:5 ratio that wins 10% of the time loses money. The goal is positive expectancy with repeatable execution, not maximizing the ratio on paper.
Subtract your stop-loss from your entry to get risk. Subtract your entry from your take-profit to get reward. Divide reward by risk. Example: entry $50, stop $48, target $56 gives risk $2, reward $6, and a 3:1 ratio.
Break-even win rate is the minimum win rate needed for a given R:R to produce zero profit. The formula is risk / (risk + reward). At 1:2 R:R, break-even is 33%. If your actual win rate is above that, your system has positive expectancy.
No. Scalpers often trade 1:1 or lower with high win rates. Swing traders may target 1:3 or higher with lower win rates. What matters is that the combination of R:R and win rate produces positive expectancy over a large sample.
Yes. The formula works for any market. Enter your entry, stop-loss, and take-profit prices in any currency or asset. The ratio is unit-agnostic — it only depends on the distance between price levels.
R:R tells you the shape of each trade. Position sizing tells you how much capital to risk. Use both: first check that R:R justifies the trade, then use a position size calculator to set the actual number of units based on your risk budget.
Outputs are only as accurate as inputs. Use realistic assumptions and review planned vs realized values weekly.
Yes. You can pair tool outputs with your review workflow and setup tags for better post-trade diagnostics.
See plans and run one weekly review loop with Tiltless: edges, leaks, and enforceable next actions.
