Risk management calculator
Risk-Reward Ratio Calculator
Enter an intended entry, stop, and target. The calculator compares the absolute price distance to the stop with the distance to the target.
Reward : risk
2.00 : 1
Price risk 5.0000 · potential reward 10.0000
Formula
Reward-to-risk ratio = target distance ÷ stop distance.
Important limitations
- •A larger ratio does not automatically mean a better trade.
- •The calculation does not estimate the probability that the target or stop will be reached.
- •Spread, slippage, commissions, gaps, and partial fills are not included.
These calculators provide mathematical outputs only. They do not account for every broker, exchange, product, margin, tax, execution, or market condition and are not financial advice.