Risk Reward Calculator

Risk Reward Calculator is a free browser-based tool that helps you calculate risk:reward ratio with trade expectancy. It is part of ToolsMonk's stock market tools collection, so you can finish the job without downloading software, creating an account, or jumping between multiple websites.

This tool is especially useful for workflows such as checking the risk-reward ratio before placing a trade, filtering out trades with poor risk-reward, and sizing targets and stops consistently. Because it runs directly in your browser, you can use it on desktop, tablet, or mobile while keeping the process fast and easy for one-off tasks as well as repeat work.

Risk Reward Calculator is designed for people who want a practical, privacy-friendly workflow with instant results inside the larger ToolsMonk library.

Risk-Reward Calculator computes the ratio between what you risk and what you stand to gain on a trade — from your entry, stop-loss, and target — the cornerstone discipline tool of structured trading.

Risk is the distance from entry to your stop-loss; reward is the distance to your target. A 1:3 ratio means risking one unit to make three, and many traders simply refuse setups below a minimum like 1:2. That rule alone filters out a lot of poor trades before emotion gets involved.

Its real power is the interplay with win rate. A strong risk-reward ratio lets you be profitable while winning less than half your trades, because a few winners outweigh several small losers; conversely, a great win rate paired with terrible risk-reward can still lose when one big loss erases many small gains. Thinking in both dimensions is what separates disciplined trading from gambling.

Crucially, a good ratio structures a trade — it doesn't predict the outcome; a 1:5 trade still loses if it stops out. And don't manufacture a flattering ratio with an unrealistic stop or target; the levels must fit the actual chart. It's an analysis aid, not trading advice. Everything runs in your browser. Pair it with the Position Size and other ToolsMonk trading calculators.