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⚖️ Risk/Reward Calculator

Compare potential reward with the amount at risk before entering a trade.

Enter values and calculate.

How to use this tool

Enter the requested values, review them for accuracy, and select the action button. Results are estimates based entirely on the information you provide.

Read the complete guide →

Calculator explained

About the Risk/Reward Calculator

Compare potential reward with the amount at risk before entering a trade. This page combines the interactive tool with practical guidance so you can understand both the result and the assumptions behind it.

How the result is calculated

Risk is the distance from entry to stop; reward is the distance from entry to target. The ratio compares potential reward with potential risk.

Practical example

An entry at 100, stop at 95, and target at 110 risks 5 points to pursue 10 points, producing a 2:1 reward-to-risk ratio.

Common mistakes to avoid

Common errors include mixing points with pips, ignoring fees or spread, using the wrong contract size, and choosing a stop distance that does not match the intended market.

How to use the result

Use the output as a planning estimate. Confirm contract specifications, spreads, commissions, minimum order sizes, margin rules, and live prices with your broker before placing a trade.

Frequently asked questions

What does the Risk/Reward Calculator calculate?

Compare potential reward with the amount at risk before entering a trade.

Can I rely on the result for an important decision?

Use the result as an estimate and verify important financial, trading, business, technical, health, or legal decisions with appropriate source data or a qualified professional.

Is my information uploaded to a server?

The calculator is designed to run in your browser. Avoid entering confidential information, and review the Privacy Policy for details about analytics and advertising technologies.

Why might my real-world result be different?

Real outcomes can differ because of fees, taxes, rounding, timing, market conditions, measurement error, third-party rules, and assumptions not represented by the calculator.

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Last reviewed 2026-07-26. Educational use only; verify important decisions with a qualified professional or authoritative source.