TradeTodaysRisk/Reward Calculator
Risk/reward is the trade-off every setup offers: how much you can earn relative to how much you put at stake. Writing it down before entry — in pips and in money — is one of the simplest habits that separates planned trading from gambling. This calculator does the math instantly.
The Formula Behind It
Reward : Risk = |Take profit − Entry| ÷ |Entry − Stop loss|- •Entry — the price where you plan to open the trade.
- •Stop loss — the price where the trade is closed at a loss.
- •Take profit — the price where the trade is closed at a profit.
- •In money terms — each side converts to your account currency through the pip value and lot size.
How to Use This Calculator
- 1
Choose the pair and direction, then enter your planned entry price.
- 2
Enter the stop-loss level dictated by your setup — structure first, ratio second.
- 3
Enter the take-profit level where your setup says the move should run out.
- 4
Add your lot size to see both sides in money, not just pips.
- 5
Judge the trade: if the ratio only works with an unrealistic win rate, skip it.
Worked Example
You plan a long on EUR/USD: entry 1.0800, stop loss 1.0750, take profit 1.0950, on 1.00 lot in a USD account.
Risk = 1.0800 − 1.0750 = 50 pips. Reward = 1.0950 − 1.0800 = 150 pips. Ratio = 150 ÷ 50. In money: 50 × $10 = $500 risked vs 150 × $10 = $1,500 potential.
Result: a 1:3 reward-to-risk ratio. The setup earns $1,500 if fully reached and costs $500 if stopped out.
Important Risk Note
A favourable ratio does not make a losing strategy profitable, and slippage can push your real exit past the stop-loss level. Size the trade so the risk side of the ratio is an amount you can genuinely afford to lose. Educational use only.