Educational tool: calculations are illustrative and are not investment advice or predictions.
Risk management

Risk / Reward Calculator

Compare stop-loss risk, target reward, break-even win rate and possible profit.

Free to useNo account requiredPrivate by defaultInputs stay in your browserTransparentFormula shown below

Formula-based educational calculator · Tested with worked examples · View methodology

Enter your scenario

Example values are pre-filled. Replace them with your own.

How this calculator works

Reading the ratio

A reward/risk result of 2 means the planned reward is twice the planned loss. The ratio does not show the probability of success, liquidity or whether the target is realistic.

Break-even win rate

The break-even rate estimates how often an identical setup would need to win before costs. Real results depend on varying wins, losses and trading charges.

How to read a risk reward ratio

A 1:2 risk reward ratio means the planned reward is twice the planned loss. The ratio alone does not make a setup profitable: win rate, execution quality and costs matter too. This calculator therefore reports the break-even win rate alongside cash risk and reward.

Risk reward example

If a long trade enters at ₹500, stops at ₹490 and targets ₹525, the gross risk is ₹10 per share and gross reward is ₹25. For 100 shares that is ₹1,000 risk versus ₹2,500 reward before charges. Add realistic entry and exit costs to see the net ratio you actually need.

Frequently asked questions

Can this result predict a trade?

No. It only applies a formula to your assumptions. Market prices, fills, fees and outcomes can differ.

Does TradeCalcZen store my values?

Calculations stay in your browser. Turn on Remember my inputs to save a scenario locally; turn it off to remove that saved scenario. No calculator values are sent to our servers.

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