Risk Reward Calculator

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.