Risk Reward Calculator
Check a trade’s risk/reward ratio, break-even win rate and how many shares to buy.
- Free
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- Runs in your browser
Below entry
Above entry
Risk : reward
1 : 3
Risk ₹5 to make ₹15 per share bought
Good setup on paper — you only need to win 25% of trades like this to break even.
- Risk per share
- ₹5
- Reward per share
- ₹15
- Break-even win rate
- 25%
- Expectancy at 50% wins
- +1R per trade
1R = the amount you risk on one trade. Expectancy is the average result per trade over many trades, before brokerage, taxes and slippage.
Position size
Buy
200 shares
worth ₹20,000 at ₹100
- Loss if stop-loss is hit
- ₹1,000
- Profit if target is hit
- ₹3,000
- Risk budget
- ₹1,000
- Position as % of account
- 20%
How the risk/reward ratio works
Risk is what you lose per share if the stop-loss is hit: entry minus stop for a long trade (stop minus entry for a short). Reward is what you gain per share if the target is hit: target minus entry for a long trade (entry minus target for a short). The ratio compares them — 1 : 3 means you risk one to make three.
The break-even win rate is risk ÷ (risk + reward). It tells you how often trades like this must succeed for wins and losses to cancel out. For position sizing, your risk budget (account × risk %) is divided by the risk per share and rounded down.
Example: you buy at ₹100 with a stop at ₹95 and a target of ₹115. Risk is ₹5, reward is ₹15, so the ratio is 1 : 3 and you break even if you win 25% of the time. Risking 1% of a ₹1,00,000 account (₹1,000) means buying 200 shares (₹20,000): you lose ₹1,000 if stopped out or make ₹3,000 at the target.
What is a good risk/reward ratio?
Many swing traders look for at least 1 : 2, which breaks even at a 33.3% win rate. But the ratio only matters together with how often you win: a 1 : 3 setup that wins 20% of the time loses money, while a 1 : 1 setup that wins 60% of the time makes money. Set targets from real chart levels, not to make the ratio look good.
How much should I risk per trade?
A common guideline is 1–2% of your account. At 1%, even ten losing trades in a row cost you only about 10% of your capital, which keeps you in the game long enough for a positive expectancy to show.
Frequently asked questions
- Does it work for forex, crypto and futures?
- Yes for the ratio and break-even win rate — enter prices with as many decimals as you need. For position size, “shares” means units; for futures or forex lots, divide by the lot size and include the contract multiplier.
- Are brokerage and taxes included?
- No. Costs and slippage reduce the reward and increase the risk slightly, so the real break-even win rate is a bit higher.
- What does expectancy mean?
- The average gain per trade in units of risk (R): win rate × reward ratio − loss rate. At a 1 : 3 ratio and 40% wins it is 0.4 × 3 − 0.6 = +0.6R, so risking ₹1,000 a trade would earn about ₹600 per trade on average.
- Can a gap skip my stop-loss?
- Yes. If the price opens beyond your stop, the loss can be larger than planned, which is another reason to keep risk per trade small.
For education and planning only — not investment advice.