Risk Reward Ratio Calculator

Understand the risk reward ratio calculator result

Use Risk Reward Ratio Calculator when you are comparing a proposed target and stop before accounting for trade probability. It asks for entry price, stop price, target price and reports risk per unit and reward per unit and reward-to-risk. Absolute target distance is divided by absolute stop distance to express reward per unit of modeled risk. Entry 100, stop 95, and target 115 gives five units of risk, fifteen of reward, and a three-to-one ratio. By exposing risk per unit and reward per unit and reward-to-risk, Risk Reward Ratio Calculator makes this specific arithmetic inspectable instead of presenting an unexplained number.

With the page defaults of Entry price 100, Stop price 95, Target price 115, the verified output is Risk per unit 5, Reward per unit 15, Reward-to-risk 3. A high ratio alone does not make a setup favorable if its probability is very low. In Risk Reward Ratio Calculator, each labeled default remains visible while you edit, so you can change one assumption at a time and trace how risk per unit responds.

Method, limits, and private processing

The ratio ignores win probability, execution costs, gaps, and whether either price will be reached. Risk Reward Ratio Calculator evaluates the entered values entirely in your browser, without sending the inputs to a server. When using its risk per unit and reward per unit and reward-to-risk, retain the stated method and input units because this result is bounded by the assumptions of absolute target distance is divided by absolute stop distance to express reward per unit of modeled risk.