Trading risk/reward (RR) calculator

Use this risk/reward calculator to assess the potential risk and expected reward of each trade.

R/R examples

Results

R/R ratio

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Potential profit

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Potential loss

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What is risk/reward?

The risk/reward (RR) ratio compares a trade's potential risk with its potential profit.

How do you calculate risk/reward?

The formula is simple:

Risk/reward = Potential profit / Potential loss

For example, if you risk €100 for a potential €300 profit, your RR is 3, or 1:3.

What is risk/reward used for?

Risk/reward helps you:

  • Quickly assess whether a trade is worth taking
  • Compare trading opportunities
  • Improve your risk management

The higher your RR, the more attractive the trade may be. An RR of 1:3 means you earn three times what you risk.

What risk/reward should you aim for?

A good RR is generally considered to be at least 1:2. But it depends on your strategy and win rate, the percentage of trades you win:

A visual example of a trading risk/reward ratio

Disclaimer: This calculator is for information only and does not constitute professional financial advice.