Risk Reward Calculator
Measure trade risk, reward, and reward-to-risk ratio for crypto entries, stops, and targets.
A setup should be judged by downside versus upside. This risk-reward calculator compares your planned loss against your potential gain.
Results
Example Calculation
An entry at $40,000, stop at $38,000, and target at $46,000 gives $2,000 of risk, $6,000 of reward, and a 1:3 risk-reward profile.
Frequently Asked Questions
What is a good risk-reward ratio?
A minimum of 1:2 is recommended, meaning your potential profit should be at least twice your potential loss.
How do I calculate risk-reward ratio?
Divide the distance between entry and take profit by the distance between entry and stop loss.
Should I always use risk-reward ratios?
Yes. Consistent use of favorable risk-reward ratios is one of the most important factors in long-term trading success.
Related Calculators
Liquidation
Estimate the liquidation level of a leveraged crypto long or short position.
📐Position Size
Calculate ideal position size from account balance, risk percentage, entry price, and stop loss.
🛑Stop Loss
Set a stop loss level for a crypto trade and estimate stop price plus dollar risk for long or short positions.