Risk Reward Calculator

Compare potential reward with planned risk.
Check the trade before you enter.

  • 100% Free
  • No Signup
  • Works Everywhere
Entry Price100
Risk Distance2 points
Reward Distance6 points
Risk / Reward1:3
1

Enter your trade setup

Trade Direction

Exit Levels

For a long trade, the stop must be below entry and the target above entry.

Estimate monetary outcome

Optional

Add a planned loss amount only if you also want an estimated profit in money.

How it works

1. Define direction

Choose long or short and enter the planned entry.

2. Measure risk

The distance from entry to stop is one unit of risk.

3. Compare reward

Reward distance divided by risk distance gives the ratio.

Take your trade review further

Forgalis TradingJournal dashboard

This calculator evaluates a setup before entry. Forgalis TradingJournal logs trades and compares planned and actual results.

Explore Forgalis TradingJournal

Use it on your website

Embed this calculator with a simple iframe.

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Common Questions

What is risk/reward ratio?

It compares the planned profit distance with the planned loss distance.

What is a good ratio?

There is no universal good ratio. Review it with win rate, costs and actual results.

Does it include trading costs?

No. Spread, commission, slippage and partial exits can change the real result.

Transparent calculation

How risk/reward is calculated

The calculator compares the clean price distance to the stop with the distance to the target.

1

Risk distance

|Entry − Stop|

|100 − 98| = 2 points

2

Reward distance

|Target − Entry|

|106 − 100| = 6 points

3

Reward-to-risk ratio

Reward ÷ Risk

6 points ÷ 2 points = 1:3

4

Breakeven win rate

1 ÷ (1 + ratio) × 100

Result: 25%

Important: The result does not account for spread, commission, slippage, gaps, partial exits or moving the stop.