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.
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.
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.