Risk-reward calculator

Is the reward worth the risk?

Every trade is a bet: a defined amount you could lose against an amount you hope to gain. This tool turns your entry, stop and target into a clear ratio — and shows the win rate you’d need just to break even.

Ratio + breakeven win rate Optional rupee totals

Educational only — it evaluates a trade plan you’ve set, it doesn’t recommend trades.

Risk-Reward Plan check
₹
₹
₹
#
Risk : reward
1 : 2.50
Solid — reward is well above risk
Risk ₹20.00/unitReward ₹50.00/unit
Risk per unit
₹20.00
Entry − stop-loss
Reward per unit
₹50.00
Target − entry
Total risk
₹2,000.00
If stop-loss hits
Total reward
₹5,000.00
If target hits
Breakeven win rate
28.6%
At this ratio you need to win at least this often just to break even over many trades
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Reading the number

What a risk-reward ratio actually tells you

A ratio of 1:2 means you’re risking one rupee to potentially make two. The higher the second number, the more each winning trade pays relative to each loss — which changes how often you need to be right.

1:1 and below

Reward barely covers — or is smaller than — the risk. You’d need to win well over half your trades just to stay even.

1:2

A common target. With reward at twice the risk, you can be wrong more often than right and still come out ahead over time.

1:3 and above

Each win pays for several losses. Harder to hit consistently, but very forgiving on win rate when it works.

The hidden number

Why breakeven win rate is the metric to watch

A great ratio means little if you never hit your target. That’s why this calculator also shows your breakeven win rate — the share of trades you’d need to win, at your chosen ratio, just to avoid losing money over many trades.

At 1:1, you need to win about half the time to break even. At 1:2, that drops to roughly a third. At 1:3, around a quarter. Comparing your honest expected win rate against this number is one of the clearest reality checks in trading.

Breakeven win rate = Risk ÷ (Risk + Reward). It ignores charges — for net figures after fees, use the brokerage calculator.
Common questions

Risk-reward FAQ

Many traders look for at least 1:2, but there’s no single “correct” ratio — it has to fit your strategy and realistic win rate. A lower ratio can still work if you win often; a higher ratio forgives a lower win rate.
No. The ratio and breakeven win rate are calculated from price alone. Adding quantity simply shows your total risk and reward in rupees.
No — it works on the gross price move. Charges narrow your real edge, so check them separately in the brokerage calculator.
No. It evaluates a plan you’ve already built. TradeProfy is educational and not a SEBI-registered investment adviser.

Size it, then cost it

Use the position size calculator to set your share count, then the brokerage calculator for net P&L.

Open position size calculator