Risk/Reward Calculator
Determine if a trade is worth taking before you enter.
Risk
$5.00
Reward
$15.00
R:R Ratio
1:3.0
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How to use this calculator
Enter your planned entry price, stop-loss level, and take-profit target. The calculator shows the dollar risk, dollar reward, and the ratio between them.
What is a good risk/reward ratio?
Most professional traders look for a minimum of 1:2 (risking $1 to make $2). The higher the R:R, the lower the win rate you need to stay profitable. R:R ratios compound your edge faster than chasing a higher win rate.
Why it matters
A 50% win rate with a 1:2 R:R is still profitable. You lose $1 on 5 trades ($5) and make $2 on 5 trades ($10). Net profit: $5. The R:R ratio is more important than the win rate.
Want precision entries with better R:R?
See how Axion Algo's buy/sell signals work with proper risk management.