Risk-Reward Ratio Calculator

Enter your entry, stop-loss, and target prices to instantly calculate the risk-to-reward ratio. A ratio above 1:2 is considered favourable for intraday trading on NSE/BSE.

Trade Parameters

Results

Enter entry, stop-loss, and at least one target to see results.

What Is Risk-Reward Ratio?

The risk-reward ratio compares the potential loss (risk) to the potential gain (reward) of a trade. A 1:3 ratio means you stand to gain ₹3 for every ₹1 you risk.

Professional intraday traders on NSE and BSE typically look for setups with at least a 1:2 risk-reward ratio. Even with a 40% win rate, a consistent 1:2.5 ratio will be profitable over time — this is how risk management creates an edge.

Formula: Risk-Reward Ratio = (Target Price − Entry Price) ÷ (Entry Price − Stop-Loss Price)

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