Risk reward calculator
Enter your entry, stop loss and take-profit target. The calculator shows the reward-to-risk ratio, what the trade is worth in R if the target is hit, and the minimum win rate this setup needs to break even.
Is your real win rate above the break-even line? Alpha Charts calculates it per setup from your trades. Start free →
How the risk reward calculator works
- Risk per unit
- |Entry − Stop|
- Reward per unit
- |Target − Entry|
- Reward : Risk
- Reward ÷ Risk
- Break-even win rate
- 1 ÷ (1 + Reward : Risk)
Step by step
- Enter your planned entry price.
- Enter your stop loss. The calculator works out whether the trade is long or short.
- Enter your take-profit target.
- Compare the break-even win rate with your real win rate for this setup from your journal.
Questions about the risk reward calculator
What is a good risk reward ratio?
There is no single good ratio. A strategy with a 2:1 ratio needs to win more than 33% of the time to break even; a 1:1 ratio needs more than 50%. The right ratio depends on how often your setup actually wins.
What is the difference between R:R and R-multiple?
R:R is the planned ratio before the trade. R-multiple is the actual result after the trade: profit or loss divided by the amount you risked.
Does this include fees?
No. Fees and slippage lower the real reward and raise the real risk, so the break-even win rate in practice is slightly higher than shown.
Related guides and journals
More free calculators
Guides
- How to Calculate R-Multiple: A Trader's Practical Guide
- Trading Journal Metrics That Actually Improve Profitability
- How to Write a Trading Plan: A Practical Template for Serious Traders
Trading journals
Stop calculating by hand. Journal it.
Alpha Charts measures every trade in R and tracks win rate and expectancy for each setup automatically.
Calculators are provided for educational purposes and are not financial advice. Results exclude fees, slippage and currency conversion.