What is the Risk / Reward Ratio Calculator?
The Risk / Reward Ratio Calculator is a free online tool that helps you r:R from entry, stop and target It runs entirely in your browser, gives an instant result, and needs no sign-up, download or spreadsheet.
Position size is the lever that decides how much a losing trade actually costs you — it's set by your account size, the percentage you're willing to risk, and the distance to your stop.
Whether you trade stocks, forex, options, crypto or futures, the risk / reward ratio is the same calculation — so this tool works for any market. Use it before you place a trade to base your decision on real numbers instead of a guess.
How to use the Risk / Reward Ratio Calculator
Using the risk / reward ratio calculator takes only a few seconds:
- Enter your figures in the risk / reward ratio calculator above — the fields are filled with an example you can replace.
- Read the highlighted result; it updates instantly as you type.
- Add your broker’s fees or commissions where relevant for a true net figure.
- Change any input to compare scenarios before you commit to the trade.
Risk / Reward Ratio formula & example
The risk / reward ratio formula is: Risk/reward ratio = (target − entry) ÷ (entry − stop).
Entry $100.00, stop $95.00, target $115.00. Reward $15.00, risk $5.00, so risk/reward = 1:3.00.
When to use the Risk / Reward Ratio Calculator
Reach for the risk / reward ratio calculator whenever you’re planning a trade and need to know your risk / reward ratio in advance. Running the number first keeps your decisions consistent and stops a single trade from doing outsized damage to your account. Traders who make this a habit — checking before every entry — are the ones who protect their capital over the long run.
Why use a risk / reward ratio calculator?
Doing risk / reward ratio by hand is slow and error-prone — a misplaced decimal or a forgotten fee can turn a winning plan into a losing one. The risk / reward ratio calculator removes that risk: it applies the correct formula every time, updates the moment you change an input, and lets you test several scenarios in seconds.
That speed matters in live markets. When a setup appears you can size it, check the reward against the risk, and act before the opportunity passes — without second-guessing your arithmetic.
- Instant, accurate risk / reward ratio with no spreadsheet
- Free, with no account, login or download
- Works on mobile and desktop, right in your browser
- Useful for stocks, forex, options, crypto and futures
Tips for accurate risk / reward ratio
- Use your real entry, exit and size — not round-number guesses.
- Include fees and spread; small costs add up across many trades.
- Recalculate whenever your price, size or stop changes.
- Round against yourself to leave a margin for slippage.