Online Tool Store
Risk Reward Ratio Calculator
Calculate the risk-reward ratio for a long or short trade from your entry, stop loss, and take profit levels. Runs entirely in your browser.
🔒 This tool runs entirely in your browser. Your files are never uploaded to a server.
Risk per unit
Reward per unit
Risk : Reward ratio
How the risk-reward ratio calculator works
- Enter your entry price, stop loss, and take profit levels.
- Select whether this is a long or short trade.
- See the risk and reward per unit, the resulting ratio, and a plain-language verdict.
FAQ
What is a good risk-reward ratio?
Many traders target at least 1:2 (risking $1 to potentially make $2), which allows a strategy to stay profitable even with a win rate below 50%.
How is the ratio calculated?
Risk is the distance between your entry price and stop loss. Reward is the distance between your entry price and take profit. The ratio is reward divided by risk.
Does this work for both long and short trades?
Yes - select the trade direction, and the calculation automatically adjusts which side the stop loss and take profit should be on.
Does a good ratio guarantee a profitable trade?
No - risk-reward ratio is one input into a trading strategy. Actual profitability also depends on your win rate, position sizing, and whether the stop loss and target are realistic given market conditions.
How we compare
| Feature | Online Tool Store | Manual mental math | Trading platform built-in tool |
|---|---|---|---|
| Instant, no account required | ✓ | ✓ | ✗ |
| Long and short support | ✓ | ✓ | ✓ |
| Plain-language guidance | ✓ | ✗ | ✗ |
A quick pre-trade sanity check on whether a setup's risk is justified by its potential reward.