Risk-to-Reward Calculator
Calculate the risk-to-reward ratio and the break-even win rate implied by a given entry, stop-loss, and target.
INPUTS
RESULTS
Method and assumptions
For a long, risk = entry − stop and reward = target − entry; reverse the differences for a short. Reward/risk is expressed as 1:R. Break-even win rate = 100 / (1 + R).
Common mistakes and edge cases
A stop must be on the losing side and a target on the profitable side. Break-even assumes every win and loss has the entered size. Fees, partial exits and variable outcomes change the actual rate.
How to use
- Choose long or short direction.
- Enter entry, stop-loss, and target prices.
- The tool computes distances, R:R ratio, and the break-even win rate.
Example
Long entry 100, stop 98 and target 106 gives 2 risk, 6 reward, a 1:3 ratio and a 25% break-even win rate before costs.
Frequently asked questions
- What is break-even win rate?
- The proportion of winning trades required for the strategy to be flat over time given the R:R ratio, ignoring costs.
- Does the tool support short trades?
- Yes — switch the direction toggle to Short.
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This tool is provided for general informational and workflow purposes only. It does not constitute financial, investment, tax, or professional advice. All calculations run in your browser; no input data is transmitted or stored.