Risk Reward Calculator

Calculate trading risk, reward and risk-reward ratio.

What is a Risk Reward Calculator?

A Risk Reward Calculator helps traders evaluate the potential profit of a trade compared to the potential loss. By understanding the risk-to-reward ratio, traders can make smarter decisions and manage their capital more effectively.

How This Tool Works

The calculator requires inputs such as entry price, stop-loss price, and target price. Using these values, it calculates the risk per trade (the difference between entry and stop-loss) and the potential reward (the difference between target and entry). It then shows the risk-to-reward ratio to help traders decide if the trade is favorable.

Example

For example, if a trader enters a trade at ₹100, sets a stop-loss at ₹95, and a target at ₹115, the risk is ₹5 and the potential reward is ₹15. The calculator will show a risk-to-reward ratio of 1:3, indicating a high potential reward compared to the risk.

Why Use a Risk Reward Calculator?

A risk reward calculator helps traders manage their risk effectively and maintain consistent trading strategies. It ensures trades are taken with proper planning, protects capital, and improves the chances of long-term profitability.