Why Use This Risk Reward Ratio Calculator
Understanding your risk-reward ratio is essential for consistent trading. This risk reward ratio calculator helps you:
- 📊 Calculate Your R:R Ratio — see your risk-reward ratio instantly.
- 💰 Understand Dollar Risk & Reward — know the monetary values.
- 📉 See Your Risk Percentage — know how much of your account is at risk.
- 🎯 Find Required Take-Profit — see the price target for a 1:2 ratio.
- 📈 Visualize Risk vs Reward — see the comparison.
- 📜 Track Your History — save, review, and export past calculations.
- 🔒 100% Private — all calculations run locally.
Risk Reward Formula Used by This Tool
Risk Distance = Entry Price − Stop-Loss Price (for long trades)
Reward Distance = Take-Profit Price − Entry Price (for long trades)
Risk Reward Ratio = Risk Distance ÷ Reward Distance
Reward-to-Risk Ratio = Reward Distance ÷ Risk Distance
Risk Amount = Risk Distance × Position Size × Per-Unit Value
Reward Amount = Reward Distance × Position Size × Per-Unit Value
Risk Percentage = (Risk Amount ÷ Account Balance) × 100
Required TP for 1:2 = Entry Price + (Risk Distance × 2)
How to Use This Risk Reward Ratio Calculator
- Select your account currency from the picker in the site header.
- Enter your entry price.
- Enter your stop-loss price.
- Enter your take-profit price.
- Optionally, enter your account balance, position size, and per-unit value to see dollar amounts and risk percentage.
- View your results instantly — see your risk-reward ratio, dollar amounts, and required take-profit for a 1:2 ratio.
Frequently Asked Questions
What is the risk-reward ratio?
The risk-reward ratio compares the potential loss (risk) to the potential gain (reward) on a trade. It’s calculated as (Entry − Stop-Loss) / (Take-Profit − Entry).
What is a good risk-reward ratio?
A ratio of 1:2 or higher is generally considered good. This means you’re risking $1 to make $2 or more. Professional traders typically target 1:2 or 1:3.
What is the reward-to-risk ratio?
The reward-to-risk ratio is the inverse of the risk-reward ratio. It shows how much you stand to gain for every dollar risked. A 1:2 risk-reward ratio equals a 2:1 reward-to-risk ratio.
How do I calculate my risk per trade?
Risk per trade = (Entry Price − Stop-Loss Price) × Position Size × Per-Unit Value. This calculator does this automatically when you enter position size and per-unit value.
What is the required take-profit for a target ratio?
The required take-profit for a target ratio is the price level that achieves your desired risk-reward ratio. This calculator shows the required take-profit for a 1:2 ratio as a benchmark.