TRADE SETUP INPUTS
Stop Loss
Take Profit
RISK / REWARD RATIO
1 : 0.00
Enter Trade Values
What is the risk to reward ratio?
The risk to reward ratio compares how much you could lose on a trade (entry to stop loss) with how much you could gain (entry to target). A ratio of 1 : 2 means you are risking ₹1 to potentially make ₹2.
How to use this calculator
- Choose Long if you are buying, or Short if you are selling first.
- Enter your entry price, stop loss and target price.
- Optionally add the quantity to see your total risk and total reward in rupees.
Formula
- Risk per share = Entry price − Stop loss (for a long trade)
- Reward per share = Target price − Entry price (for a long trade)
- Risk : Reward = 1 : (Reward ÷ Risk)
- Break-even win rate = 1 ÷ (1 + Reward ÷ Risk) × 100
The break-even win rate tells you how often a setup with this ratio must work for you to break even before costs. For example, at 1 : 2 you break even if one in three trades hits target.