Risk/Reward Ratio Calculator
See if a trade is worth taking before you enter it.
Uses & Examples
When to Use This Tool
- Checking if a trade setup is worth entering before you click buy
- Comparing two potential entries on the same stock to pick the better risk/reward
- Validating your trade plan — most pros require at least 2:1 reward to risk
- Quickly screening watchlist ideas to find the best setups of the day
Worked Example
Worked Example
Entry: $50.00 | Stop: $47.50 | Target: $57.50
Risk per share: $50.00 − $47.50 = $2.50
Reward per share: $57.50 − $50.00 = $7.50
Ratio: $7.50 ÷ $2.50 = 3:1 reward to risk
Verdict: Strong setup — you gain $3 for every $1 you risk.