What is my risk/reward ratio if I know my entry, stop, and target prices?
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Your Result
Fill in the fields on the left and click Calculate to see your risk/reward ratio and the win rate you'd need just to break even at that ratio.
Visualizing It
How this is calculated
Trade direction is determined automatically: a stop below entry is treated as a long trade, and a stop above entry is treated as a short trade.
Risk per share equals the distance between your entry price and your stop-loss price.
Reward per share equals the distance between your entry price and your target price.
The risk/reward ratio is your reward per share divided by your risk per share, shown as 1 : X.
Break-even win rate is the minimum percentage of trades you'd need to win, at this exact risk/reward ratio, just to avoid losing money over time. It equals risk divided by the sum of risk and reward.
This calculator does not know your actual win rate. A favorable ratio paired with a win rate below this level will still lose money over time, and a small ratio paired with a win rate above it can still turn a profit.
This does not include commissions, fees, or slippage, all of which raise the win rate actually needed to break even.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Trading involves risk of loss, and a favorable risk/reward ratio does not guarantee a profitable trade or a profitable strategy. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation. Always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
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