Risk Reward Ratio Calculator
Calculate your risk-to-reward ratio based on entry, stop loss, and target price
to plan trades strategically.
📘 About Risk Reward Ratio Calculator
🎯 What is Risk Reward Ratio?
The Risk to Reward Ratio (RRR) is a trading metric that compares how much risk (potential loss) a trader takes for a possible profit (reward). It tells you how much you stand to gain for every unit of risk taken.
🧠 Why is it Important?
- Helps in making strategic trading decisions
- Prevents emotional and impulsive trades
- Supports proper risk management
- Improves your win/loss consistency
- Ensures trades are worth the potential reward
✅ Ideal Ratio: At least 1:2 or higher (risking 1 to make 2 or more).
🧮 How This Calculator Works
- Entry Price: Price at which you enter the trade
- Stop Loss Price: Price at which you’ll exit to limit your loss
- Target Price: Price at which you aim to book profit
- Trade Type: Buy (Long) or Sell (Short)
- Currency: Choose from over 50 currencies
The calculator then gives you:
- Risk = Entry − Stop Loss
- Reward = Target − Entry
- Ratio = Reward ÷ Risk
📊 Example
Entry: ₹100
Stop Loss: ₹90
Target: ₹130
Result: Risk = ₹10, Reward = ₹30, Ratio = 1:3 → Excellent trade setup!
🌐 Who Should Use It?
- Stock Market Traders
- Crypto & Forex Traders
- Commodity and Futures Traders
- Beginner to Expert Level Investors
🔐 Why Use This Tool?
- Mobile-friendly and responsive layout
- Instant risk/reward calculation
- Supports 50+ global currencies
- Displays results in table and box format
- Perfect for fast trading decisions
Risk Reward Ratio Calculator Guide
The Risk Reward Ratio is a fundamental concept in trading that helps you evaluate whether a trade is worth taking. It compares the potential profit of a trade to its potential loss, helping you make informed decisions about position sizing and trade selection.
Understanding Risk Reward Ratios:
1:1
Poor - Avoid
1:2
Good - Acceptable
1:3+
Excellent - Preferred
Key Benefits:
- Helps maintain consistent profitability even with lower win rates
- Forces disciplined approach to trade selection
- Enables better position sizing decisions
- Reduces emotional trading decisions
- Improves overall trading performance metrics
Professional traders typically aim for risk:reward ratios of at least 1:2, meaning they risk ₹1 to potentially make ₹2. This allows them to be profitable even if they're wrong 50% of the time.
📚 Frequently Asked Questions (FAQs)
1. What is a Risk Reward Ratio Calculator?
A Risk Reward Ratio Calculator is a trading tool that helps you analyze the potential risk and reward of a trade before executing it. It calculates how much you could lose if the trade goes wrong (risk), versus how much you could gain if it goes right (reward).
2. How to calculate the risk reward ratio manually?
The formula is simple:
Risk = Entry Price − Stop Loss
Reward = Target Price − Entry Price
Risk/Reward Ratio = Reward ÷ Risk
But instead of doing manual calculations, this calculator gives instant results with accuracy and multiple currency support.
3. What is a good Risk to Reward Ratio?
Anything above 1:2 is considered good. For example, if you are risking ₹100 to make ₹200 or more, your ratio is 1:2 or better. Most successful traders aim for a minimum of 1:2 or 1:3 to stay profitable in the long run.
4. Who should use this tool?
This tool is perfect for:
- Stock market traders (NSE, BSE)
- Crypto traders (Bitcoin, Ethereum, Altcoins)
- Forex traders (USD, INR, EUR)
- Commodity traders (Gold, Silver, Oil)
- Intraday & Swing traders
5. What are the benefits of using this calculator?
- Quick and accurate calculations
- Helps in better trade planning and stop loss placement
- Supports over 50 currencies globally
- Responsive design for mobile and desktop
- Improves your trading discipline and profitability
6. Is this tool free to use?
Yes! This Risk Reward Ratio Calculator is 100% free to use, accessible from any device with internet. No registration or login is required.
7. Can I use this for option trading or futures?
Absolutely. Whether you're trading Options, Futures, Stocks, Forex, or Crypto, this calculator works for all asset types as long as you enter your Entry, Stop Loss, and Target prices.
8. Does it support currency conversion?
This tool supports display in over 50 currencies (₹, $, €, £, ¥, etc.), but does not convert between them. You must enter all prices in the same selected currency.
