Free tool

Risk/reward calculator

Plan entry, stop, and target before you size a trade. See risk-reward ratio and break-even win rate for crypto, stocks, FX, indices, and metals.

Education only—not financial advice. ChartGuru is analysis-only; you execute through your own broker.

Calculator

Quick target presets

Requires entry and stop. Sets target from your stop distance.

Results

Direction
Long
Risk per unit
—
Reward per unit
—
Risk : reward
—
Break-even win rate
—

How to use it

Three steps

  1. 1

    Enter entry, stop, and target

    Choose Long or Short, then fill in your planned entry, invalidation (stop), and take-profit (target). Use quick presets (1:1, 1:2, 1:3) to set a target from your stop distance.

  2. 2

    Review R:R and break-even win rate

    Check reward versus risk per unit and the break-even win rate—the minimum win % you need before costs to break even on that ratio.

  3. 3

    Size the trade and verify on ChartGuru

    Optional: add position size and fees for dollar risk/reward. Then compare your plan with scored setups on live markets—analysis only, you decide.

Definitions

What each result means

Risk per unit
Distance from entry to stop (invalidation)—your loss per share, coin, or contract if the thesis fails.
Reward per unit
Distance from entry to target—your gain per unit if price reaches the planned objective.
Risk : reward
Reward divided by risk, shown as 1 : X. A 1 : 2 ratio means you risk $1 to make $2.
Break-even win rate
Minimum win percentage needed to break even before commissions: risk ÷ (risk + reward). Lower is better—you can lose more often and still survive.
Total $ risk / reward
When position size is set: per-unit risk or reward multiplied by units (minus optional fees per unit).

Formula

Risk-reward math

R:R = Reward ÷ Risk · Break-even win rate = Risk ÷ (Risk + Reward)

Worked example (long)

  • Entry: $100
  • Stop: $95 → risk $5
  • Target: $110 → reward $10
  • R:R: 1 : 2
  • Break-even win rate: 33.3%

Reference

Break-even win rate by R:R

Risk : rewardBreak-even win rate
1 : 150.0%
1 : 1.540.0%
1 : 233.3%
1 : 325.0%
1 : 420.0%

Discipline

Good habits

  • Define invalidation before entry — Use a logical stop where the thesis breaks—not an arbitrary percentage.
  • Pair R:R with win rate — A 1 : 3 setup still loses money if you rarely reach target. Break-even win rate tells you the math.
  • Anchor targets to structure — Set take-profit at the next sensible level, not a fantasy extension.
  • Size from dollar risk — After R:R looks acceptable, size so total $ risk fits your account rule.

Avoid

Common mistakes

  • Measuring R:R without a real stop — Use invalidation, not arbitrary percentages.
  • Targeting unrealistic extensions — Anchor targets to structure, not hope.
  • Ignoring win rate — High R:R with rare wins can still lose over time.
  • Moving stops after entry — Honor invalidation; widen stop only by reducing size or passing.

FAQ

Risk-reward calculator questions

Ratio math, break-even win rate, and how ChartGuru fits your workflow.

What is a good risk-reward ratio?
Many discretionary traders filter for at least 1 : 2 before taking a setup, but the right ratio depends on win rate and costs. Use break-even win rate to see whether your ratio matches how often you actually win.
What does break-even win rate mean?
It is the minimum percentage of trades you must win (before fees) to break even at a given R:R. Formula: risk ÷ (risk + reward). At 1 : 2, break-even is about 33.3%.
Does this calculator work for crypto, stocks, and FX?
Yes. Enter prices in any denomination—per share, per coin, or per pip-equivalent unit. The math is the same; you apply your broker’s tick size and spread separately.
How does ChartGuru use risk-reward?
ChartGuru scored reads include bias, key levels, confidence, and invalidation on Technical Analysis—so you can estimate reward versus risk on live markets, not only on a manual calculator. Analysis only; you execute elsewhere.
Is high risk-reward enough to take a trade?
No. You still need edge, confluence, and acceptable probability. R:R filters bad math; it does not replace a valid thesis.
How do I go from R:R to position size?
Divide your max dollar risk (account × risk %) by risk per unit. See our position sizing guide and use the optional position-size fields in this calculator.

Go deeper

Related reading

Risk-reward ratio in trading

Long-form guide: formula, examples, and common mistakes.

Position sizing in trading

Turn per-unit risk into shares or contracts safely.

Analysis-only trading research

Why ChartGuru is research—not execution or signal bots.

ChartGuru vs TradingView

Charting vs research layer—many traders use both.

AI crypto chart analysis

Scored crypto setups with confidence and invalidation.

What is an invalidation point?

Define when your thesis breaks before you enter.

Run the math here—verify setups on live markets

ChartGuru adds bias, key levels, confidence scores, and invalidation on crypto, stocks, FX, indices, and metals. Analysis only—you stay in control of every trade.

No credit card · Analysis only — scored setups with confidence and invalidation across crypto, stocks, FX, and metals