Risk/reward calculator

    What a setup pays relative to what it risks

    Enter entry, stop and target to get the risk/reward ratio, the reward in dollars per share, and the win rate that ratio needs to break even.

    Risk / reward
    3.00 to 1
    Breakeven win rate
    25.00%
    Risk per share
    $6
    Reward per share
    $18

    What the inputs mean

    Entry
    Price paid.
    Stop
    Price where the idea is wrong.
    Target
    Price where the idea is finished.

    Formula

    R:R = |target − entry| ÷ |entry − stop| · breakeven win rate = 1 ÷ (1 + R:R)

    Worked example

    $100 entry, $94 stop, $118 target3.0 to 1, so the setup breaks even at a 25% win rate.

    Questions people ask

    Is a higher ratio always better?

    No. Wider targets are hit less often. The ratio is only useful next to the win rate you actually achieve on that kind of setup.

    Limitations

    Every result here is arithmetic on the numbers you enter. It carries no view on any specific security, assumes returns are steady when real returns are not, and ignores taxes, slippage and commissions. Use it to size and sanity-check, not to forecast.

    Now run it on a real ticker

    Score any name free, then bring the number back here.

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    Autonium publishes research, not recommendations. Scores, factors and written reads describe historical and current data and are not buy or sell advice. Not financial advice. Market data is refreshed on a schedule and may lag. See our methodology and disclosures.