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Risk/Reward Ratio Calculator

See whether a trade is worth taking before you enter it. Punch in your entry, stop-loss, and target price and this free calculator returns your risk/reward ratio, the dollars you risk and stand to gain per share, and the win rate you'd need just to break even. Instant results.

How it works

Your risk per share is the distance from entry to stop-loss: |entry − stop|. Your reward per share is the distance from entry to target: |target − entry|.

The risk/reward ratio is reward ÷ risk, shown as 1 : R. Buying at $50 with a $48 stop ($2 risk) and a $56 target ($6 reward) gives a 1 : 3 ratio, you're risking $1 to make $3.

The breakeven win rate is risk ÷ (risk + reward) × 100. At 1 : 3 that's 25%, meaning you only need to be right a quarter of the time to break even. Higher reward relative to risk lowers the win rate you need.

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Educational tool. Not investment advice. JagSim is a simulator, not a broker.

Last updated: July 2026

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