Trading tools · Risk-reward

Risk-reward / target calculator

Before opening a trade, experienced traders ask one thing first: is this trade worth the risk? The answer lives in the risk-reward ratio (R:R). It puts what you are willing to lose (entry to stop) next to what you hope to gain (entry to target) and gives you a ratio like 1 : 2.5, meaning you are willing to stake 1 unit of risk to chase 2.5 units of reward. This risk-reward calculator takes your entry, stop, and target and works out the R:R, the unit risk-reward, and the potential gain/loss percent in real time, with a two-sided bar that shows the size of the risk against the reward. This is an educational aid only, not investment advice.

The three prices for this trade

Direction

Entry price where you plan to buy / open

Stop price where you exit if it goes against you

Target price where you take profit

Risk-reward R:R Live estimate

1:2.50

For every 1 unit of risk, potential reward 2.50× · risk distance 3.33%, reward distance 8.33%

Solid R:R (≥ 2)

Unit risk

$2,000

Entry to stop

Unit reward

$5,000

Entry to target

Gain/loss %

-3.3% / +8.3%

Loss / gain

Risk vs reward (scaled to price distance)

Risk (to stop) Reward (to target) Entry price

How the R:R is worked out

Risk = |entry − stop| Reward = |target − entry| R:R = reward ÷ risk → written as 1 : (reward/risk)

Example (long): entry 60000, stop 58000, target 65000. Risk = 60000 − 58000 = 2000; reward = 65000 − 60000 = 5000; R:R = 5000 ÷ 2000 = 2.5, written 1 : 2.5. It means you stake 1 unit of risk to chase 2.5 units of reward. The higher the ratio, the more favorable the single trade, but whether the price actually reaches the target is a separate matter. R:R only tells you whether the structure is good, not whether you will win.

How to use it

Pick a direction first. On a long, the stop should be below the entry and the target above it; on a short, the reverse. If you get it backward, a note below flags it.
Enter the three prices in turn: entry, stop, and target.
The big number up top is the R:R (always written as 1 : X), below it are the unit risk, unit reward, and gain/loss percent, and the two-sided bar draws the risk and reward segments to scale by price distance. The longer the reward segment, the better.

Common questions

What counts as a good R:R?

A common rule of thumb is at least 1 : 2, meaning what you hope to gain is more than double what you are willing to lose. That way, even with a win rate of only 40–50%, the long-run expectancy can still be positive. The higher the R:R, the lower the win rate you need. But don't push the target out to an unrealistic distance just to inflate the ratio: the target should have a real basis.

Does a high R:R guarantee a profit?

Not necessarily. R:R only describes the risk-reward structure of a single trade, not the probability of reaching the target. What really drives profit is the combination of R:R and win rate: a high R:R with a low win rate, or a low R:R with a high win rate, can both work. This tool helps you see the structure clearly; the win rate is down to your own judgment.

How does this relate to the position calculator?

They work best together: first use the position calculator to set how big to size by per-trade risk, then use this tool to confirm whether the trade's R:R makes the cut. One handles how much to bet, the other handles whether the bet is worth making.

Does the percentage include fees?

No. The gain/loss percent is based on pure price distance, with no fees, funding rates, or slippage. In real trading those costs slightly lower your real reward and slightly widen your real loss. Treat the result as a structural reference, and factor in costs when you place the order.

Structure looks good? Then place the order

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This tool is an educational reference for beginners. The R:R and percentages are based on pure price distance, with no fees, funding rates, or slippage, and are not investment advice. R:R does not predict win rate or outcome. Crypto is highly volatile, so judge for yourself and take the risk on yourself before taking part. Checked: 2026-06.