Risk/Reward Calculator

Calculate risk/reward ratio, expected value, and optimal position sizing for trades.

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Important Financial Disclaimer

This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.

For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.

Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.

Not a substitute for professional financial advice

Trade Setup

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$
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shares

Advanced Analysis

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Risk/Reward Ratio

1:3.00

Excellent - Very favorable setup

Total Risk
$500.00
Total Reward
$1,500.00

Trade Analysis

Risk Per Share$5.00
Reward Per Share$15.00
Position Value$10,000.00
Account Risk5.00%

Expected Value Analysis

Expected Value$500.00
Breakeven Win Rate25.0%
Kelly Criterion33.3%

Tip: Most professional traders aim for a minimum 1:2 risk/reward ratio and risk no more than 1-2% of their account per trade.

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