Risk/Reward & Take-Profit Calculator
Convert a stop distance and desired R multiple into target, size and potential reward.
Risk/Reward & Take-Profit Calculator calculation coverage
- 01
Desired R target
- 02
Account risk budget
- 03
Position-size output
Planning aid only. Execution price and losses can differ from stop levels.
About this tool
A risk-reward calculator measures the planned loss between entry and stop against the potential gain to a target. An R-multiple target applies the selected multiple to the stop distance in the profitable direction.
How it works
One R equals the absolute entry-to-stop distance. Target price adds or subtracts desired R × unit risk. Position size uses the account risk budget divided by unit risk.
| Parameter | How it is used |
|---|---|
| Entry price | Starting price for the trade plan. |
| Stop price | Defines one unit of price risk. |
| Desired R multiple | Sets the target reward relative to risk. |
| Account risk | Limits total planned loss. |
A 2R target
$10,000 account, 1% risk, $100 long entry, $95 stop and a desired reward of 2R. Costs are excluded.
One R = $5 per unit. Target = $100 + 2 × $5 = $110. Quantity = $100 risk ÷ $5 = 20.
20 units, a $110 target, $100 planned risk and $200 potential reward.
A 2R target does not imply a high probability of reaching it. Payoff and win rate both matter.
How to use this tool
- Enter a technically valid entry and protective stop.
- Choose a target R multiple and set the account risk budget.
- Check target price, quantity and potential reward against market structure.
Frequently asked questions
What does a 2:1 reward-to-risk ratio mean?
It means the planned profit is twice the planned loss. For every one currency unit at risk, the target seeks two units before costs.
Is a higher risk-reward ratio always better?
No. Distant targets may reduce win probability. A strategy should evaluate expectancy from both average payoff and actual win rate.
Can I use the tool for short trades?
Yes. A short target is placed below entry while its protective stop is above entry, using the same absolute R distance.