Risk–Reward Ratio (Quick)
Enter your risk distance (entry → stop) and reward distance (entry → target). We’ll compute the ratio Reward / Risk and the breakeven win-rate implied by that ratio.
Inputs
Entry → Stop (absolute units: points, ₹, $ …)
Target → Entry (absolute units)
Results
Computed as Reward ÷ Risk.
1 ÷ (1 + RR). At this win-rate your expectancy ≈ 0.
Left bar shows “1 risk”. Right bar scales with RR (capped at 4× for display).
Pro note: RR is only one dimension. Combine it with your historical win-rate and average win/loss to check expectancy.
Why this matters
The risk–reward ratio helps compare setups quickly. A higher ratio means you can be wrong more often and still break even (or better), all else equal. Use it to filter trades and to pressure-test target/stop placement.
- RR = Reward ÷ Risk (e.g., 2.0 → “2:1”).
- Breakeven win-rate = 1 ÷ (1 + RR).
Tip: Use our full Win-Rate & Risk–Reward planner to include position sizing and expectancy.