Risk-to-Reward Ratio Calculator

Enter entry, stop, target, and direction. The calculator returns the risk amount, the reward amount, both ratios, and the break-even win rate the setup needs to be profitable at this geometry alone.

1. Pick long or short.
2. Enter the entry, the stop-loss, and the take-profit (target) prices.
3. Read the risk, the reward, the R:R, and the break-even win rate.

Risk = |Entry − Stop|
Reward = |Target − Entry|
R:R = Risk ÷ Reward
Break-even Win Rate = Risk ÷ (Risk + Reward)

Entry $100, stop $98, target $106. Risk = $2, reward = $6. R:R = 1:3. Break-even win rate ≈ 25%. Anything above that, and the setup's geometry is net positive.

• Picking a target by guessing instead of by chart structure.
• Ignoring fees and slippage when reward is small.
• Forgetting that R:R alone is not edge — execution and win rate matter too.