Risk Reward Calculator

Calculate risk, reward, risk-reward ratio and breakeven win rate for any trade. Share a filled result with a URL that restores the inputs automatically.

Worked example: entry price ₹500, stop loss price ₹480, target price ₹540, quantity 100. Change any input to recalculate.

Risk Amount
₹2,000.00
Reward Amount
₹4,000.00
Risk-Reward Ratio
1:2.00
Breakeven Win Rate
33.33%

This calculator is for educational estimates only. Verify assumptions before making trading, investing, tax, or financial planning decisions.

What is the Risk-Reward Ratio?

The risk-reward ratio measures the potential profit of a trade relative to its potential loss. A 1:2 ratio means you risk ₹1 to make ₹2. Professional traders on NSE and BSE target a minimum 1:2 risk-reward to ensure profitability even with a 50% win rate.

How to Use This Risk Reward Calculator

Enter your entry price, stop loss price, target price, and quantity. The calculator computes your absolute risk and reward in rupees, the ratio, and the breakeven win rate — the minimum win percentage needed to break even at this ratio.

Breakeven Win Rate Formula

Risk Amount = |Entry − Stop Loss| × Quantity Reward Amount = |Target − Entry| × Quantity Risk-Reward Ratio = Reward ÷ Risk Breakeven Win Rate = Risk ÷ (Risk + Reward) × 100

Frequently Asked Questions

  • Many traders prefer a minimum 1:1.5 or 1:2 ratio. A 1:2 ratio means you only need to win about 33% of your trades before costs to break even, giving more room for normal losing streaks.
  • Yes. For long options, your risk is the premium paid (per unit × lot size) and your reward is the target premium or intrinsic value at expiry. Enter premium as the stop-loss-equivalent cost and target premium as the target price equivalent.
  • It tells you the minimum win rate needed to not lose money at a given risk-reward ratio. At 1:2, you only need to be right 33% of the time. At 1:1, you need to win 50%. Knowing this helps you evaluate whether your trading strategy's historical win rate is sufficient.