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Educational tools only. Not investment, financial, or trading advice. RiskReward.io is not a registered investment adviser or broker-dealer. Trading involves substantial risk of loss. Calculator outputs do not guarantee results. [DISCLAIMER PLACEHOLDER: pending counsel review]

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Risk/Reward Ratio Calculator

Learn the math behind a trade: R multiple, fees, break-even win rate, expected value and position size, calculated instantly from numbers you enter.

Trade math calculator

Trade setup (hypothetical)
Sizing & fees
Gross R:R
-
Net R:R after fees
-
Position size-
Net $ at risk-
Net $ potential gain-
Total fees-
Break-even win rate (net)-
Expected value / trade-

Outputs are arithmetic on the numbers you enter. They are not predictions and not a recommendation to trade.

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Frequently asked questions

What does the risk/reward ratio measure?

It compares the potential loss to the potential gain on a hypothetical trade. Whether a ratio is workable depends on win rate: the break-even win rate is 1 / (1 + R), before fees.

How do fees change the math?

Commissions, spreads and slippage add to every loss and subtract from every win, so the net R:R is always lower than the gross R:R, and the break-even win rate goes up.

What is expected value per trade?

EV = (win rate × net gain) − (loss rate × net loss). It is a statistical average over many hypothetical trades, not a forecast for any single trade.

How is risk/reward calculated?

For a long trade: risk = entry − stop, reward = target − entry, and the ratio is reward ÷ risk. For a short trade the subtractions are reversed.

How is position size calculated?

Position size = (account × risk %) ÷ (distance from entry to stop). For example, 1% of a $10,000 account with a $5 stop distance is 20 units, before fees. This calculator also subtracts commissions and per-side fees.