Free Tool
Risk : Reward Calculator
Is this trade worth taking? Enter entry, stop, and target — we'll tell you the R:R ratio and grade the setup quality.
Result
⚖️
Enter entry, stop, and target above — we'll grade the setup instantly.
Why R:R is the math that matters
Most retail traders obsess over win rate. Pros obsess over reward-to-risk. Here's why: you can be wrong 60% of the time and still print money — if your winners are 3× the size of your losers.
The formula
Risk = | Entry − Stop | Reward = | Target − Entry | R:R Ratio = Reward ÷ Risk Expected Value = (Win % × Reward) − (Loss % × Risk)
The thresholds we use
- SKIPR:R < 1.0 — you're risking more than you stand to make. Even a 70% win rate barely breaks even after slippage. Pass.
- MARGINALR:R 1.0 – 2.0 — only worth it if you have a strong edge (60%+ win rate). For most setups, wait for a better entry.
- STRONGR:R 2.0 – 3.0 — the textbook standard. Profitable even at a 40% win rate.
- EXCEPTIONALR:R 3.0+ — these are the trades that pay for the losers. You can be right 25% of the time and still net positive at 4:1.