Calculate your trade's risk-reward ratio from entry, stop-loss, and target. Get position size, breakeven win rate, and expectancy across win rate scenarios.
Calculate your trade's risk-reward ratio from entry, stop-loss, and target. Get position size, breakeven win rate, and expectancy across win rate scenarios.
Position Sizing (optional)
Enter entry, stop-loss, and target to calculate your risk-reward ratio.
DETAILS
This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.
This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.
Use it to compare scenarios quickly and to understand the trade-offs behind the final result.
Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.
If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.
Entry ₹500, SL ₹485, Target ₹540, Capital ₹5,00,000, Risk 1%
Graphical view
This matches the tool logic: qty is floored so your max loss stays within your chosen risk %.
Entry ₹250, SL ₹247.5, Target ₹255, Capital ₹2,00,000, Risk 0.5%
Graphical view
HOW IT WORKS
Input your planned entry price, stop-loss level, and profit target. These three numbers define the geometry of your trade.
Add your capital and risk per trade percentage to get the exact number of shares to buy so you never risk more than planned.
Get your risk-reward ratio, the minimum win rate needed to break even, and a table of expected outcomes at different win rates.
FAQ
A 1:2 risk-reward ratio is generally considered the minimum for disciplined trading. At 1:2, you can be profitable with just a 34% win rate. A 1:3 ratio allows profitability with just a 25% win rate. Never take trades with an R:R below 1:1.
It depends on your R:R ratio. At 1:1 R:R, you need > 50% win rate. At 1:2, you need > 33%. At 1:3, you need > 25%. The formula is: Min Win Rate = 1 / (1 + R:R). This is why a higher R:R is so powerful — it reduces the win rate needed to survive.
Expectancy = (Win Rate × Average Win) − (Loss Rate × Average Loss). A positive expectancy means your system is profitable over many trades. The R:R simulator in this calculator shows your expectancy per trade at various win rates for the current setup.
R:R is one filter, not the only filter. A good trade also needs: (1) a valid technical or fundamental reason, (2) alignment with your strategy/playbook, (3) acceptable risk given current market conditions. R:R is a necessary but not sufficient condition for a good trade.
Track your R:R on every trade automatically
TradeLyser calculates your actual R:R and expectancy from real trades — not just planned setups — so you can see if you're sticking to your rules.