Forex Risk-to-Reward Calculator
Compare the risk and reward distance between your stop-loss and take-profit.
Result
How to Use This Calculator
Enter your planned entry price, stop-loss price, and take-profit price. The tool shows the risk and reward distance and their ratio, with a simple visual bar.
How the Calculation Works
Risk distance is how far price would move against you before hitting your stop-loss. Reward distance is how far price would move in your favor before hitting your take-profit. The ratio compares the two.
Formula
Risk Distance = |Entry − Stop-Loss|
Reward Distance = |Take-Profit − Entry|
Ratio = Reward Distance / Risk Distance
Example Calculation
Entry 1.0850, stop-loss 1.0800, take-profit 1.0950: risk = 0.0050, reward = 0.0100, ratio = 1 : 2.
Frequently Asked Questions
Does a higher ratio mean a better trade?
This tool only calculates the distances you enter — it doesn't evaluate probability, strategy, or market conditions, so it isn't an indication that a trade is profitable or suitable.
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Disclaimer
Risk-to-Reward Ratio Calculator: A Quick Check Before Every Trade
A "risk reward ratio calculator" is one of the simplest tools a trader can use, and also one of the most searched, because the concept it measures — how much you stand to lose versus how much you stand to gain on a single setup — is central to almost every trading strategy. Enter your entry price, your stop-loss price, and your take-profit price, and this forex risk reward calculator instantly shows the risk distance, the reward distance, and the ratio between them, alongside a simple visual bar that makes the comparison easy to read at a glance.
Traders searching "stop loss take profit calculator" or "RR ratio calculator" are usually doing one of two things: evaluating a setup before entering a trade, or reviewing past trades to see whether their risk-to-reward discipline actually matches their stated strategy. This tool supports both. Before a trade, plug in your planned levels to confirm the ratio meets whatever threshold your strategy calls for — many traders look for a minimum of 1:2 or 1:3, though this calculator doesn't enforce or recommend any particular ratio, since the right number depends heavily on your win rate and overall approach.
Because risk-to-reward is a distance-based calculation, it works identically whether you're trading a currency pair, an index, or any other instrument quoted in price terms — the math behind a "trading risk reward ratio" doesn't change based on what you're trading, only the price scale does. That's part of why this calculator keeps its inputs simple and generic (entry, stop, target) rather than tying itself to Forex-specific units like pips, even though it lives alongside the rest of our Forex calculator suite.
It's worth being clear about what this tool does not do: a favorable risk-to-reward ratio on its own doesn't make a trade profitable or advisable — that also depends on the probability of the trade working out, which this calculator has no way of estimating. Think of it as a fast, visual gut-check on the structure of a setup, best used alongside the Position Size Calculator to make sure the dollar amounts at risk and at target line up with your account size, not just the price levels on the chart.
Because so many "free risk reward calculator" searches come from traders building or refining a rulebook, this tool is also useful as a quick backtesting aid: run a handful of past setups through it to see what ratio your strategy actually tends to produce, rather than relying on a remembered impression of your own trading history.