Input panel
Try an example
Result appears here
Enter values above, then calculate. Use the output to inspect the assumptions—not to predict a return.
Tool / payoff planning
Risk-reward ratio calculator
Enter an entry, stop and target to compare the planned downside with the planned upside. The calculator also shows the theoretical break-even win rate before costs. It evaluates arithmetic—not the probability or quality of the setup.
Runs in your browserNo account · No API key
local only
How to use it
Numbers are clearer when the assumptions are visible.
Start with the default example. Change one input at a time and notice which part of the result moves. Then read the explanation below before using any real-world number.
- Use your account currency consistently.
- Include costs and uncertainty outside the simple model.
- Verify the product’s own contract or fee rules.
Quick answer
The short answer
Enter a stop on the loss side and a target on the profit side of entry. The calculator compares price distances and a simplified break-even rate; fees, slippage and partial exits change realised results.
Input reference and starting values
| Input | Meaning | Starting value |
|---|---|---|
| Entry price | Planned entry | 100 |
| Stop price | Invalidation level | 96 |
| Target price | Planned exit | 108 |
| Cash risk | Optional risk budget | 100 |
What the result means
Price risk is the absolute distance from entry to stop. Potential reward is the distance from entry to target. Dividing reward by risk produces the reward-to-risk multiple. The cash-risk input then estimates a potential profit at that same multiple.
The break-even win rate assumes full winners and full losses with no costs. Real results include partial exits, fees, spread and slippage.
Working modelBreak-even rate = 1 ÷ (1 + reward-to-risk)
Check market logic before the ratio
A target must be reachable under the plan and a stop must represent invalidation. Do not squeeze a stop or stretch a target only to manufacture a larger number.
Compare planned and realised R over a useful sample. That reveals whether execution, costs and judgement match the model.
- Use the same price units.
- Add costs outside the simplified model.
- Size only after invalidation is defined.
- Record realised outcomes.
In practice
Test the other side of the ratio
An entry at 100, stop at 96 and target at 108 has four units of price risk and eight of potential reward: 2:1 before costs. The break-even win-rate formula assumes the planned fills and a stable payoff.
Change the target to 104. The ratio becomes 1:1, yet the tool still has no information about whether either target is likely. Record spreads, fees and losses beyond a stop separately.
Primary references
Continue with original sources.
These links provide definitions and current context. Product rules, regulation and network details can change, so verify time-sensitive information at the source.
Common questions
Before you move on
What is a good risk-reward ratio?+
There is no universal number. It must fit the setup’s tested probability, costs and execution.
Can the calculator handle short trades?+
Yes. It uses absolute distances, but you should still confirm that stop and target are on the correct sides.
Is break-even win rate a forecast?+
No. It is a mathematical threshold under simplified assumptions.
Continue this topic
Choose the next useful step
- Risk-reward ratio: compare the downside and upside
Learn how risk-reward ratio, break-even win rate and trade expectancy work together, with practical examples and common mistakes.
- Trading expectancy calculator
Calculate average trading expectancy, cost-adjusted break-even win rate and payoff ratio from win rate, average win, average loss and costs per trade.
- Crypto position size calculator
Calculate crypto position size from account balance, risk percentage, entry and stop price, with an optional cost buffer and clear exposure checks.