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Finance Calculators

Risk Reward Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
₹
₹
Verified formula Private

Reward-to-risk ratio (to 1)

3.00

Risk per share
₹5.00
Reward per share
₹15.00

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Risk Reward Ratio Calculator

The Risk Reward Ratio Calculator works out your reward-to-risk ratio (to 1), along with 2 related figures in an instant. Enter entry price, stop-loss price and target price and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the entry price.
  2. Enter the stop-loss price.
  3. Enter the target price.
  4. Read off your reward-to-risk ratio (to 1), together with risk per share and reward per share — the calculator updates automatically, with no button to press.

Formula

The Risk Reward Ratio Calculator uses the formula:

Reward-to-risk ratio (to 1) = (Target price - Entry price) ÷ (Entry price - Stop-loss price)

Worked example

For example, with entry price of ₹100, stop-loss price of ₹95 and target price of ₹115, the reward-to-risk ratio (to 1) is 3.00.

Inputs used
Entry price ₹100
Stop-loss price ₹95
Target price ₹115
Results
Reward-to-risk ratio (to 1) 3.00
Risk per share ₹5.00
Reward per share ₹15.00

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

Divide the reward (target − entry) by the risk (entry − stop). Entry 100, stop 95, target 115 gives a 3:1 reward-to-risk ratio.

Many traders look for at least 2:1 or 3:1, so winners outweigh losers even with a moderate win rate.

No. It must be paired with a realistic chance of hitting the target. A great ratio with a tiny probability still loses over time.

A higher reward-to-risk ratio lets you be profitable with a lower win rate, since each win covers several losses.

Enter the entry price. Enter the stop-loss price. Enter the target price. Read off your reward-to-risk ratio (to 1), together with risk per share and reward per share — the calculator updates automatically, with no button to press.

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