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Risk/Reward Calculator

Optimize your trade entries and position sizing

Live Calculator

Risk / Reward

Trade Analyzer

Leave blank to calculate ratio only

Trade Psychology

A ratio of 1:2 means you profit $2 for every $1 risked. This allows you to break even with only a 33% win rate.

Enter your trade levels to calculate the R:R ratio

Master Your Trading Math

The Risk/Reward Ratio Calculator is a vital tool for traders in Forex, Stocks, and Crypto. It helps you quantify the potential profit of a trade relative to its potential loss.

Professional traders often stick to a minimum ratio of 1:2 or 1:3. This means for every $1 they risk losing, they aim to make $2 or $3 in profit. This mathematical edge allows you to be profitable even if you lose more trades than you win.

Why use this calculator?

  • Visualize the Ratio: Instantly see if a trade setup is worth taking.
  • Calculate Exact Dollar Amounts: Input your position size to see exact PnL (Profit and Loss).
  • Auto-Detect Direction: Works for both Long (Buy) and Short (Sell) positions.
  • Protect Your Capital: Ensure you aren't risking too much of your portfolio on a single trade.

"It's not about whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong." โ€” George Soros

Quick Guide

  • 1. Enter your base values in the fields above.
  • 2. Adjust interest rates or terms to see live changes.
  • 3. Review the charts to visualize your growth.

Results are estimates based on standard financial algorithms.

Common Questions

Everything you need to know about this calculator and the math behind it.

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