Free Risk Reward Ratio Calculator Plan Every Trade Perfectly
forex traders calculate their exact risk to reward ratio
before entering any trade. A good risk reward ratio is
essential for profitable trading always aim for minimum
1:2 ratio. Our risk reward calculator instantly shows your
R:R ratio, potential profit and potential loss so you
never enter a bad trade again.
Risk / Reward Calculator
Calculate your risk to reward ratio before entering any trade. Always aim for 1:2 minimum.
Risk / Reward Calculator
Enter entry, stop loss and target to get your R:R ratio instantly.
How to Use Our Risk Reward Ratio Calculator
Using our risk and reward calculator takes less than
30 seconds:
- Select Trade Direction — Long (Buy) or Short (Sell)
- Enter Investment Amount — your trade size
- Enter Entry Price — where you enter the trade
- Enter Stop Loss Price — your maximum loss level
- Enter Take Profit Price — your profit target
- Click Calculate R:R Ratio — instantly get:
• R:R Ratio (e.g. 1:3)
• Potential Profit (USD)
• Potential Loss (USD)
• Risk Percentage
Why Use Our Risk Reward Calculator
Our risk reward ratio calculator is used by thousands
of professional traders daily. Here is why:
✅ 100% Free — no signup required
✅ Long & Short — both directions supported
✅ Instant R:R Ratio — calculated in seconds
✅ Potential Profit — exact dollar amount shown
✅ Potential Loss — know your max loss before trading
✅ Any Market — crypto, forex, stocks all supported
✅ Risk Management — trade smarter not harder
Reward Risk Ratio Formula How It Works
Understanding the reward risk ratio formula is simple:
📐 Risk Reward Ratio Formula:
R:R Ratio = (Take Profit – Entry) / (Entry – Stop Loss)
Example:
- Entry Price: $45,000
- Stop Loss: $43,000 (Risk = $2,000)
- Take Profit: $49,000 (Reward = $4,000)
- R:R Ratio = 4000/2000 = 1:2 ✅
Our risk reward ratio calculator automatically applies
this reward risk ratio formula so you get instant
accurate results without any manual calculation.
Always aim for minimum 1:2 ratio — meaning for every
$1 you risk, you should aim to make at least $2 profit.
What is a Good Risk Reward Ratio?
Professional traders follow strict risk reward rules:
📊 1:1 Ratio — Break even (Not recommended)
📊 1:2 Ratio — Minimum acceptable ✅
📊 1:3 Ratio — Good trading setup ✅✅
📊 1:5 Ratio — Excellent setup ✅✅✅
With a 1:2 risk reward ratio, you only need to win
34% of your trades to be profitable. With 1:3, you
only need to win 25% of trades.
Use our risk and reward calculator before every trade
to make sure your setup meets your minimum ratio
requirement. Never take a trade with less than 1:2
risk reward ratio.
Frequently Asked Questions (FAQ)
Q: What is a Risk Reward Ratio Calculator?
A: A risk reward ratio calculator is a free trading
tool that calculates your potential profit versus
potential loss ratio based on your entry, stop loss
and take profit prices.
Q: What is the reward risk ratio formula?
A: Reward Risk Ratio = (Take Profit – Entry Price)
divided by (Entry Price – Stop Loss). Our risk reward
calculator applies this formula automatically for
instant results.
Q: What is the minimum risk reward ratio I should trade?
A: Always aim for minimum 1:2 risk reward ratio. This
means your potential profit should be at least 2x your
potential loss. Use our risk and reward calculator to
verify every trade setup before entering.
Q: Does this work for Forex trading too?
A: Yes! Our risk reward ratio calculator works for
crypto, forex, stocks and any other financial market.
Just enter your entry, stop loss and take profit prices.
Q: Can I use this for Short trades?
A: Absolutely! Our risk reward calculator supports
both Long (Buy) and Short (Sell) trade directions
for complete flexibility.