Risk : reward calculator
Compare how much you can lose (entry to stop-loss) with how much you aim to make (entry to target), and see how often a trade like this must work just to break even.
- Risk : reward
- 1 : 3.00
- Risk per share
- ₹10.00
- Reward per share
- ₹30.00
- Win rate needed to break even
- 25.0%
Estimates for learning only; real charges and results can differ. Not investment advice.
How it works
- Enter entry, stop-loss and target prices (works for buy and short trades).
- Risk : reward = 1 : (reward ÷ risk).
- Breakeven win rate = risk ÷ (risk + reward): win more often than this to come out ahead before charges.
FAQ
What is a good risk reward ratio?
Many traders look for at least 1 : 2, so that one winning trade covers two losing ones. It is a guideline; the win rate matters too.
Is a high ratio always better?
Not always. Far targets are hit less often, so a 1 : 5 setup may win rarely. Check both ratio and win rate with a backtest.