TRADER TOOLS

Risk / Reward Calculator

Enter your entry, stop-loss and take-profit levels below to compare potential reward with the risk taken.

Planning

Risk / Reward Calculator

Check the structure of a trade before entry.

All tools

How to use the Risk / Reward Calculator

Enter your trade direction, entry price, stop-loss level and take-profit level. The calculator compares the distance you are risking with the potential reward and displays the result as a risk-to-reward ratio.

How Risk and Reward Work

Risk/reward compares the amount you could lose on a trade with the amount you could potentially gain. For example, a 1:2 ratio means the planned reward is twice the amount being risked. The ratio should be considered alongside setup quality, win rate and your overall risk management.

Risk / Reward Example

If you risk £100 on a trade and your planned profit target is £200, the trade has a 1:2 risk-to-reward ratio. If the potential reward is £300 for the same £100 risk, the ratio is 1:3.

A higher risk-to-reward ratio does not automatically make a trade better. The quality of the setup, your expected win rate and the amount of account risk taken should all be considered together.

For a deeper explanation, read our Risk / Reward Ratio in Trading lesson. You can also use the Position Size & Lot Size Calculator to calculate how much to risk on a trade, or the P&L Calculator to estimate the gross profit or loss from your planned entry, exit and position size.