Risk-to-Reward (R2R) Calculator
Work out the risk-to-reward ratio for a trade from your entry, stop-loss, and target — with a live stock price lookup so you can set up a trade in seconds.
Risk : Reward Ratio
1 : 3.00
Risk vs Reward per Share
Risk / share
₹3.00
3.00% of entry
Reward / share
₹9.00
9.00% of entry
Asymmetric setup — verify the target is realistic, not just wide.
Total Position (100 qty)
Max Loss
₹300
Max Profit
₹900
Minimum Win Rate to Break Even
25.0%
At a 1:3.00 ratio, you need to win at least 25.0% of trades just to break even, before costs.
How Your Stop-Loss Changes the Ratio
Keeping your target fixed, here's how tightening or loosening your stop-loss distance changes the risk-to-reward ratio.
| Stop Distance | Stop-Loss Price | Risk / Share | Ratio |
|---|---|---|---|
| 50% | ₹98.50 | ₹1.50 | 1 : 6.00 |
| 75% | ₹97.75 | ₹2.25 | 1 : 4.00 |
| Current | ₹97.00 | ₹3.00 | 1 : 3.00 |
| 125% | ₹96.25 | ₹3.75 | 1 : 2.40 |
| 150% | ₹95.50 | ₹4.50 | 1 : 2.00 |
Risk-to-Reward Quality Guide
You're risking more than you stand to gain. Needs a tighter stop or a farther target.
Workable only with a high win rate. Most traders find this hard to sustain.
A solid, widely-used minimum for intraday and swing setups.
Lets you be profitable even with a below-50% win rate.
Asymmetric setup — verify the target is realistic, not just wide.
Risk-to-Reward (R2R) Calculator — Set Up Trades With Discipline
The Risk-to-Reward Calculator helps traders check, before entering a position, whether a setup is worth taking. Enter your entry price, stop-loss, and target — or pull in a live stock price with the built-in search — and instantly see your risk-to-reward ratio, the minimum win rate you need to break even, and your total risk and reward in currency terms.
Risk-to-reward is one of the simplest yet most important checks in trading. A profitable trading system doesn't need a high win rate if the reward on winning trades comfortably outweighs the loss on losing trades. This calculator makes that math instant.
How the Risk-to-Reward Ratio Is Calculated
Risk per share = |Entry Price − Stop-Loss Price|. Reward per share = |Target Price − Entry Price|. Risk-to-Reward Ratio = Reward ÷ Risk, shown as 1 : X.
For example, if you buy at ₹100 with a stop-loss at ₹97 and a target of ₹109, your risk is ₹3 and your reward is ₹9 — a 1:3 ratio. That means for every ₹1 you're risking, you stand to make ₹3 if the target is hit.
Why the Breakeven Win Rate Matters
Breakeven win rate = Risk ÷ (Risk + Reward) × 100. At a 1:1 ratio you need to win more than 50% of trades to be profitable. At 1:2, you only need to win more than 33.3% of the time. At 1:3, that drops to 25%.
This is why experienced traders often say the win rate matters less than most beginners think — a trader who wins only 40% of trades can still be highly profitable with a consistent 1:2 or better ratio, while a trader who wins 60% of trades can still lose money with a poor 1:0.5 ratio.
Using the Live Stock Price Lookup
Search any stock — Indian (NSE/BSE, e.g. RELIANCE.NS, TCS.NS) or global (AAPL, TSLA) — and the calculator fetches the live market price and sets it as your entry price automatically. A default stop-loss and target are suggested at ±1% and ±3%, which you can edit to match your own strategy before checking the ratio.
How to Use This Calculator — Step by Step
Step 1 — Choose Long (buy) or Short (sell) based on your trade direction.
Step 2 — Search for a stock to pull the live price, or type your entry price manually.
Step 3 — Enter your stop-loss price — where you'll exit if the trade goes against you.
Step 4 — Enter your target price — where you plan to book profit.
Step 5 — Enter your quantity or lot size to see the total rupee risk and reward for the full position, not just per share.
Step 6 — Check the ratio against the quality guide, and use the sensitivity table to see how tightening your stop changes the setup.
What Counts as a Good Risk-to-Reward Ratio?
- Below 1:1 — Poor. You're risking more than you could gain; needs a much higher win rate to be profitable.
- 1:1 to 1:1.5 — Below average. Only works with a high win-rate strategy.
- 1:1.5 to 1:2 — Good. A common minimum threshold used by many day and swing traders.
- 1:2 to 1:3 — Great. Profitable even with a below-50% win rate.
- 1:3 and above — Excellent, but always sanity-check that the target is realistic and not just placed far away to inflate the ratio.
Frequently Asked Questions
What is a good risk-to-reward ratio for intraday trading?
Most intraday traders aim for at least 1:1.5 to 1:2, since intraday setups tend to have lower win rates due to tighter time constraints. A 1:2 or better ratio gives you a cushion to still be profitable even if you win fewer than half your trades.
How is the risk-to-reward ratio different from the win rate?
Win rate is the percentage of trades that are profitable. Risk-to-reward compares how much you stand to lose versus gain on a single trade. A profitable strategy needs the right combination of both — a low win rate can still be profitable with a high enough risk-to-reward ratio, and vice versa.
Does a higher risk-to-reward ratio always mean a better trade?
Not necessarily. A very wide ratio can come from setting an unrealistic target far from the entry price, which lowers the probability of the target actually being hit. The ratio should always be checked against a realistic, technically justified target — not just widened for the sake of a better number.
Can I use this calculator for options or futures trades?
Yes — enter the premium or futures price as your entry, and your stop-loss and target premium levels. For lot-based instruments, enter the total quantity (lot size × number of lots) to see your total risk and reward.
Where does the live stock price come from?
The live price is fetched from a public market data feed and is provided for convenience, not for order execution. Always confirm the current price on your broker's trading terminal before placing an actual trade.