Measure trade setups with clear risk metrics. Compare long and short scenarios before placing capital. Use structured numbers to improve consistent investing decisions daily.
| Position | Entry | Stop | Target | Account Size | Risk % | Fees Per Unit | Reward:Risk |
|---|---|---|---|---|---|---|---|
| Long | 50 | 47 | 59 | 10000 | 1 | 0.10 | 2.87 : 1 |
| Short | 120 | 126 | 108 | 15000 | 1.5 | 0.20 | 1.90 : 1 |
| Long | 220 | 212 | 244 | 25000 | 2 | 0.25 | 2.88 : 1 |
Long Trade Risk Per Unit = (Entry Price - Stop Loss) + Fees Per Unit
Long Trade Reward Per Unit = (Target Price - Entry Price) - Fees Per Unit
Short Trade Risk Per Unit = (Stop Loss - Entry Price) + Fees Per Unit
Short Trade Reward Per Unit = (Entry Price - Target Price) - Fees Per Unit
Risk Amount = Account Size × (Risk % ÷ 100)
Position Size = Risk Amount ÷ Risk Per Unit
Reward to Risk Ratio = Reward Per Unit ÷ Risk Per Unit
Breakeven Win Rate = Risk Per Unit ÷ (Risk Per Unit + Reward Per Unit) × 100
Enter your trade direction first. Choose long for buy setups. Choose short for sell setups.
Type the planned entry price, stop loss, and target price. Then add account size and your allowed risk percentage.
Include estimated fees per unit if needed. This makes the ratio more realistic.
Press the calculate button. The result appears above the form under the header section.
Review the trade risk, expected reward, position size, capital required, and breakeven win rate before taking the trade.
Use the CSV and PDF buttons to save the result for journaling, review, or portfolio planning.
A free risk reward ratio calculator helps investors test a trade before money is exposed. It turns a trading idea into measurable numbers. That process supports discipline. It also reduces random decision making.
Every trade has three core prices. They are entry, stop, and target. These numbers define downside and upside. The calculator measures both. It then shows the relationship between potential loss and potential gain.
A strong setup can still fail if size is too large. Position sizing controls that problem. This calculator uses account size and risk percentage to estimate suggested units. That helps investors limit damage from a losing trade. It also keeps each position consistent.
Investors often trade both directions. A long trade expects price growth. A short trade expects price decline. This page supports both cases. It adjusts the formulas automatically. That saves time and reduces manual errors.
The breakeven win rate is valuable. It shows the minimum win percentage needed over many trades. A higher reward relative to risk lowers that requirement. This helps investors evaluate whether a setup fits their method.
Many traders ignore trading costs. That can distort the true ratio. This calculator lets you add fees per unit. The result becomes closer to real execution. That is important for active investing and repeatable strategy testing.
Good investors track decisions. The CSV and PDF options make record keeping simple. You can save each setup, compare ideas, and review patterns later. That habit supports better risk management over time.
A structured routine improves consistency. Check the ratio. Confirm the loss limit. Review position size. Then compare the setup with your investing rules. A small planning step can protect capital and improve long term performance.
Many investors look for 2:1 or better. That means potential reward is at least twice the planned risk. The right target still depends on strategy, win rate, market conditions, and execution quality.
Yes. Choose the short option in the form. The calculator changes the formulas so risk and reward are measured correctly for a sell-first setup.
Fees reduce net reward and increase true risk. Adding them gives a more realistic trade plan. This is especially useful for frequent traders and tighter setups.
It is the minimum win percentage needed to avoid losing money over time, assuming similar trade sizes. Lower breakeven rates usually come from stronger reward relative to risk.
Position size is based on account size, selected risk percentage, and risk per unit. The formula divides allowed account risk by the loss expected on one unit.
Yes. The calculator is flexible. You can use it for any market where entry, stop, target, and trade size are defined clearly.
The reward per unit becomes small. That lowers the reward to risk ratio and raises the breakeven win rate. Such trades often need a higher accuracy rate.
No. A high ratio alone is not enough. You should also consider trend quality, volatility, liquidity, timing, fees, and whether the setup matches your investing plan.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.