Calculate the risk-to-reward ratio and minimum win rate required for trading profitability.
Result
Calculated based on entry, stop-loss, and target exit levels.
Save as
R:R = (Target Price - Entry) / (Entry - Stop Loss) | Win Rate = 1 / (1 + R:R)
Entry ₹250, Stop ₹240 (Risk ₹10), Target ₹280 (Reward ₹30).
Risk-Reward Ratio: 1 : 3.00 | Breakeven Win Rate: 25.00%.
Calculate optimal share quantity to trade based on portfolio capital and stop-loss risk percentage.
Open calculatorCalculate stock trading net profit, return on investment (ROI %), and total trade value.
Open calculatorMeasure total return on investment percentage and annualized gain from capital outlays.
Open calculatorEstimate maturity value, invested amount, and gains from monthly mutual fund SIPs.
Open calculatorWith a 1:3 R:R ratio, a trader can be wrong 65% of the time and still remain profitable overall, because the size of winning trades far outweighs small controlled losses.
Consistent trading profitability is a function of two numbers: win rate and average win-to-loss ratio. Maintaining a positive mathematical expectancy ensures portfolio longevity.