calculate investment risk reward ratio
position size calculator
risk management calculator
trading risk calculator
Risk/Reward
Protect your capital. Calculate the risk/reward ratio and proper position size before you trade.
Last Updated: March 1, 2025
# What is Risk/Reward?
An Investment Risk Calculator helps traders determine the potential profit vs loss of a trade and suggests how much to buy to limit risk.
# How Does Risk/Reward Work?
- 1Enter Entry Price.
- 2Enter Stop Loss and Take Profit levels.
- 3Enter Total Account Size and Max Risk %.
- 4See the position size and Risk:Reward ratio.
# Formula Used
`R:R = (Take Profit - Entry) / (Entry - Stop Loss)`# Common Use Cases
Stock trading.
Cryptocurrency trading.
Forex position sizing.
# Why Use This Tool?
Prevents blowups: Stick to 1-2% risk.
Objective math: Removes emotion.
Clear targets.
Trusted & Secure
• Calculations are performed entirely in your browser.
• No signup, no data storage, no tracking.
• Formulas based on standard financial principles.
# Frequently Asked Questions
What is a good R:R?▼
Most successful traders look for at least 1:2 or 1:3 risk-to-reward ratio.
How much should I risk per trade?▼
Standard advice is never to risk more than 1% to 2% of your total account equity on a single trade.
Does position sizing affect my stop loss?▼
No, stop loss is technical. Position size adjusts to ensure that hitting your stop loss only costs you your pre-defined risk amount.
Last updated: March 2025 • v2.1.0 • Secure Client-Side Processing