Risk Reward Ratio Calculator
Compare what a trade risks against what it aims for, from your entry, stop-loss and target.
Result
- Reward per share
- ₹15.00
- 15.00% from entry
- Total risk on the position
- ₹500
- 100 shares
- Total reward if the target is met
- ₹1,500
- Break-even hit rate at this ratio
- 25.0%
- The share of trades that would have to reach target for this ratio to break even, before charges
A risk-reward ratio is arithmetic on the three prices you entered. It is not a prediction, it says nothing about how likely either level is to be reached, and it is not a recommendation to take the trade. Real risk can exceed the stop-loss if the price gaps through it.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
A risk-reward ratio compares the distance from your entry to your stop-loss against the distance from your entry to your target. It is a way of stating the shape of a trade in one number before you place it.
Formula
- Risk per share = | Entry price − Stop-loss |
- Reward per share = | Target price − Entry price |
- Risk-reward ratio = Reward per share ÷ Risk per share
Frequently asked questions
What is a good risk-reward ratio?
There is no universally good number. A ratio only means something alongside how often the target is actually reached — the calculator shows the hit rate at which this ratio would merely break even.
Does a 1:3 ratio mean I will make three times my risk?
No. It means the target is three times as far away as the stop. Whether either level is reached is not something arithmetic can tell you.
Is my risk capped at the stop-loss?
Not strictly. A stop-loss executes at the next available price, so a gap down or an illiquid counter can fill well below your stop.