Risk/Reward Calculator
Compare the planned downside to a stop with the planned upside to a target.
Risk/reward calculator
Risk per share—
Reward per share—
Reward:risk—
Planned $ risk / reward—
This compares planned price distances only; it says nothing about the probability of reaching the target.
Why ratio alone is incomplete
A strategy with large average winners can still lose money if successful trades are too rare. Conversely, a strategy with modest average winners can have positive expectancy if its win rate and loss control compensate. Use the expectancy calculator to connect these pieces.