How to use Risk / Reward Calculator
Enter entry, stop-loss, and take-profit prices. Read risk distance, reward distance, R-multiple, and breakeven win-rate hints shown in the tool.
Example: a 3R trade with a 45% win rate
You enter at $100, place a stop at $95 and a target at $115. You win 45% of similar trades.
- Risk = $100 − $95 = $5; reward = $115 − $100 = $15
- Risk-reward = $15 ÷ $5 = 3.00R
- Expected value per trade = 0.45 × $15 − 0.55 × $5 = $4
- Break-even win rate = 1 ÷ (1 + 3.00) = 25%
At 3R you only need to win 25% of trades to break even, so a 45% win rate has a positive expected value of $4 per trade.
Formula & methodology
risk = |entry − stop|. reward = |target − entry|. R = reward / risk. Positive distances required for a valid setup.
Plan crypto trades with explicit R-multiples
Risk/reward turns vague “looks good” charts into a numeric ratio before you size. A setup that only offers 0.5R after fees is usually fee-dominated.
Combine with position size so dollar risk matches your cap, and with fee break-even so the first target clears costs.
This is planning math, not a signal. Invalidation still requires discipline when price tags the stop.
All CryptonicTools utilities are free, mobile-first, and require no account.