Risk/Reward Ratio Calculator
Calculate the potential risk and reward of your trades in USD or INR.
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Enter Trade Details
Risk/Reward Analysis
Risk Amount
Potential Loss
Reward Amount
Potential Profit
Risk per Unit
Loss per Unit
Reward per Unit
Profit per Unit
Understanding Risk/Reward Ratio
What is Risk/Reward Ratio?
The risk/reward ratio measures the potential profit of a trade against its potential loss. It helps traders evaluate whether a trade is worth taking based on the potential upside compared to the downside.
How to Calculate
Risk/Reward Ratio = (Take Profit – Entry Price) / (Entry Price – Stop Loss)
Interpreting the Ratio
- Ratio > 1: Potential reward is greater than risk (favorable)
- Ratio = 1: Potential reward equals risk (neutral)
- Ratio < 1: Potential reward is less than risk (unfavorable)
Tip: Many successful traders aim for a risk/reward ratio of at least 1:2 or higher.
Benefits of This Tool
- Real-Time Risk/Reward Ratio – Instantly see if your trade is worth taking with a visual ratio bar.
- USD & INR Support – Switch currencies with one click — perfect for Indian and global traders.
- Position Size Scaling – Adjust units to see total risk and reward for 1 share or 1,000.
- Color-Coded Feedback – Red to green gradient shows risk level: < 1 (bad), 1–2 (okay), >2 (great).
- Per-Unit Breakdown – Know exactly how much you risk or gain per share, contract, or lot.
- Live Updates – Results recalculate as you type — no need to click “Calculate” every time.
- Input Validation – Prevents invalid trades (e.g., stop loss above entry) with clear alerts.
- 100% Free & Private – No login, no data sent — all calculations happen in your browser.
- Beginner to Pro – Simple enough for new traders, powerful enough for scalpers and swing traders.
Pro Tip: Aim for a 1:2 risk/reward ratio — even with 50% win rate, you’ll be profitable long-term!
About This Tool
The Risk/Reward Ratio Calculator is an essential trading tool that helps you make smarter, data-driven decisions by quantifying the relationship between potential loss and potential gain in any trade.
Simply enter your entry price, stop loss, and take profit levels. The tool instantly calculates:
- Risk per unit – How much you lose if stopped out
- Reward per unit – How much you gain if target is hit
- Total risk & reward – Scaled by your position size
- Risk/Reward Ratio – The core metric of trade quality
The visual ratio bar uses a red-to-green gradient to show trade viability at a glance: ratios below 1.0 are high-risk, 1.0–2.0 are balanced, and above 2.0 are high-reward. This helps you avoid emotional trading and stick to a disciplined strategy.
Built for stocks, forex, crypto, options, and futures, the calculator supports USD and INR with live currency switching. Whether you’re trading Nifty, Bitcoin, or Tesla, you get accurate results in your preferred currency.
Unlike broker platforms that hide risk metrics, this tool puts transparency first. It validates inputs in real time — no stop loss above entry, no negative position size — preventing costly mistakes before they happen.
Perfect for day traders, swing traders, and long-term investors who want to improve win rate and risk management. Use it to backtest setups, compare strategies, or teach risk principles to beginners.
All calculations are client-side using pure JavaScript — your trade data never leaves your device. No ads, no tracking, no sign-up.
Remember: A great trader doesn’t win every trade — they win more when right than they lose when wrong. This tool helps you do exactly that.