Risk–Reward Calculator
How to Use Risk–Reward Calculator
- Enter your planned entry price.
- Enter your stop loss price.
- Enter your target price.
- Click Calculate.
- The calculator shows whether your trade is worth taking.
Theory – Why Risk-Reward Matters?
Risk-Reward ratio tells traders how much they are risking to earn how much reward. Professional traders always look for trades where reward is at least 2 times the risk.
For example, if you risk ₹10 and expect to earn ₹30, your risk-reward ratio is 1:3, which is considered a very good trading opportunity.
Formula Used
Risk = |Entry Price − Stop Loss|
Reward = |Target Price − Entry Price|
Risk-Reward Ratio = Reward ÷ Risk