Risk / Reward Calculator
Compare potential upside against potential downside for a planned trade before you enter it.
Risk per unit
$5.00
Reward per unit
$15.00
Risk / reward ratio
1 : 3.00
This calculator is for informational purposes only and is not investment advice. All calculations happen locally in your browser.
How this works
The risk/reward ratio compares how much you stand to lose if a trade hits your stop-loss against how much you stand to gain if it hits your take-profit target. A ratio of 1:3 means you're risking one dollar to potentially make three.
Risk/reward is only half the picture — it needs to be weighed against your strategy's actual win rate. A high ratio with a very low win rate can still be unprofitable over time, and a lower ratio with a high win rate can still work. Neither number alone tells you whether a strategy is sound.