Risk Reward Calculator

Measure trade risk, reward, and reward-to-risk ratio for crypto entries, stops, and targets.

Enter entry, stop, and take-profit to see dollar risk, dollar reward, and the reward-to-risk ratio so you only take trades that meet your minimum R:R.

How it works

Enter entry, stop, and target. The calculator returns risk/reward ratio, required win rate, and potential profit/loss so you can compare multiple setups instead of judging each one emotionally in isolation.

Formula

Risk/Reward = (Target − Entry) ÷ (Entry − Stop) for longs. A ratio above 2:1 is often preferred because it lowers the win rate required to stay profitable over time. The cleaner the target and stop placement, the more useful the ratio becomes.

Example

Long at $100 with stop at $95 and target at $115: risk = $5, reward = $15, risk/reward = 3:1. You can be wrong twice for every win and still stay near breakeven before fees. If the same trade only targets $108, the ratio drops sharply and the idea becomes less attractive unless your win rate is unusually high.

Tips

Aim for ratios ≥2:1 to offset inevitable losses.
Tighten stops only if they still respect the setup structure.
Combine with position sizing to keep dollar risk consistent.

FAQ

Is 1:1 ever okay?

Only if win rate is very high; most traders prefer at least 2:1 to build edge.

Does slippage change the ratio?

Yes. Include expected slippage and fees for a realistic view.

What win rate do I need?

At 2:1, break-even win rate is ~33%. At 3:1, ~25%.

Should I move targets?

Adjust only if the market structure changes; avoid cutting winners too early.

Continue your trade plan

Move from this calculator into the next tools that usually matter most: sizing, reward-to-risk, fees, and the supporting guides that explain the trade logic.

Step 1 → Profit Calculator Step 2 → Position Size Calculator Step 3 → Risk Reward Calculator Step 4 → Liquidation Calculator

See where risk-reward matters most

These guides show how reward-to-risk fits broader capital deployment, exit logic, and automation decisions instead of standing alone.

Stop Loss vs Trailing Stop Strategy Guide

Connect target quality to the stop method you plan to use.

Crypto Risk Management Guide

See how position size, stops, and reward-to-risk work together before entry.

Related Crypto Calculators

Continue the trade plan with the next calculators that usually matter after this step, from fees and position sizing to exit planning and downside control.

Position Size

Related Guides

Crypto Risk Management Guide: Sizing, Stops, and R:R

Manage crypto risk with position sizing, stop losses, and reward-to-risk planning linked to calculators.