Risk Reward Calculator: Ratio, Win Rate Needed and Total Risk
Enter your entry, stop loss and target. You see the risk-reward ratio and how often such trades must win to break even.
- Nothing you type is stored
- Free
- No signup
Risk : reward
1 : 2.50
Good- Risk per share
- ₹20.00
- Reward per share
- ₹50.00
- Win rate to break even
- 28.57%
An estimate for learning and planning, not investment advice. Trading in shares and F&O carries risk of loss.
Long trade: stop below entry, target above.
How to use
- Enter the entry price.
- Enter the stop loss and the target. Stop below entry means a long trade; above means short.
- Add the quantity to see the total risk and reward in rupees.
Good to know
Risk = |entry − stop loss|, reward = |target − entry|, and the ratio is shown as 1 : reward ÷ risk. Entry ₹500, stop ₹480, target ₹550 gives risk ₹20, reward ₹50: 1 : 2.5.
Win rate needed to break even = 1 ÷ (1 + R). At 1 : 2.5 you only need to win about 28.6% of trades to break even before costs; at 1 : 1 you need 50%. Many traders look for at least 1 : 2, but a high ratio with a target that is rarely reached is not better.
Charges and slippage reduce the real reward. This is an estimate for planning, not investment advice.
Questions
What is a good risk-reward ratio?
Many traders aim for 1 : 2 or better, but it only works if the target is realistic for that stock and timeframe.
How do I calculate the ratio?
Divide the distance to the target by the distance to the stop loss.
What does "win rate needed" mean?
The share of trades that must hit the target, rather than the stop, for you to break even over many trades.
Can I use it for short trades?
Yes. Put the stop above the entry and the target below.
Does it include charges?
No. Use the brokerage calculator to see costs per trade.