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Risk · Core

Risk / Reward Calculator

Use an entry, stop, target and share count to translate a trade plan into dollars at risk, possible reward and a reward-to-risk ratio.

02 · TRADE STRUCTURE

Risk / Reward

How to use it: Enter where you plan to buy, where you would exit if wrong, your profit target and your share count. It compares how much you could lose with how much you could gain. Example: 100 shares bought at $50 with a $47 stop risk $300; a $58 target offers $800, or $2.67 of potential reward for every $1 at risk.

Reward-to-risk ratio2.67 : 1
Planned risk$300.00
Potential reward$800.00

What this result meansThe ratio compares the planned upside with the planned downside. It does not measure the probability of either outcome.

How to use this calculator

Use an entry, stop, target and share count to translate a trade plan into dollars at risk, possible reward and a reward-to-risk ratio. Change one assumption at a time, compare the result and consider what the formula leaves out.

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Formula and assumptions

Reward-to-risk = reward per share ÷ risk per share. Results are simplified illustrations and may exclude taxes, changing rates, liquidity, spreads, market impact, assignment, broker rules or other real-world factors.

Common questions

Does this calculator use live market data?

No. Every value comes from the assumptions you enter. A ticker symbol, when shown, is only a label.

Can I make a trade based on this result?

The result is an educational illustration, not a recommendation or a complete analysis. Verify current facts, account rules, costs and risks independently.

Why might the actual result be different?

Real outcomes can be affected by execution price, spread, slippage, fees, taxes, liquidity, volatility, financing costs, corporate actions and changing market conditions.

Educational illustration only. This calculator does not use live market data and does not provide investment, trading, tax or legal advice. Verify formulas, rules, fees and product details with current primary sources and regulated providers before acting.

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