Measure reward versus risk for a trade. This dedicated page is built for fast, clean calculations and search visibility.
Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.
How to use this calculator
- Open the risk/reward calculator page.
- Enter the required values in the form fields.
- Click Calculate to see the result and breakdown.
- Use the related links to explore similar tools.
Understanding risk-to-reward ratio
Risk-to-reward (R:R) ratio compares how much you can lose (distance to stop loss) versus how much you stand to gain (distance to target). A 1:2 R:R means risking ₹1 to make ₹2. This single number determines whether a trading strategy can be profitable even with a modest win rate.
At 1:2 R:R, you only need to win 34% of trades to break even. At 1:3 R:R, you break even winning just 25% of trades. Most retail traders fail not because of bad win rates, but because they take trades with 1:1 or worse R:R while expecting to win consistently.
Win rate vs. R:R — the tradeoff
- 1:1 R:R: Requires over 50% win rate to be profitable. Very difficult to sustain.
- 1:2 R:R: Profitable above 34% win rate. Achievable with disciplined setups.
- 1:3 R:R: Profitable above 25% win rate. Allows for substantial losing streaks while remaining in profit.
- 1:5+ R:R: Trend-following strategies can achieve these with win rates as low as 20%.
Setting targets at arbitrary round numbers without reference to technical levels produces inconsistent R:R. The target should be set at the next meaningful resistance or at a predefined multiple of risk. Placing a target too close reduces R:R below 1:2 and makes the strategy mathematically marginal.