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CryptonicTools

Risk / Reward Calculator

Full guide

Enter entry, stop and target to see your risk-reward ratio and the win rate you need to break even.

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Risk

5

Reward

15

R:R

1 : 3

EV / trade

4

Breakeven win %

25%

EV assumes equal $1 risk units. Breakeven win-rate = 1/(1+R).

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.

  1. Risk = $100 − $95 = $5; reward = $115 − $100 = $15
  2. Risk-reward = $15 ÷ $5 = 3.00R
  3. Expected value per trade = 0.45 × $15 − 0.55 × $5 = $4
  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.

Want more depth on purpose, benefits, and pitfalls? Read the full Risk / Reward Calculator guide.

Frequently asked questions

What is risk/reward (R-multiple)?+

It compares potential profit to potential loss using your entry, stop, and target. A 2R setup risks $1 to aim for $2 of reward at the planned target.

Does a good R-multiple guarantee profit?+

No. You still need a win rate and fees that make expectancy positive. Pair this with position size and fee break-even.

Long and short — does the math change?+

Yes — stop and target sit on opposite sides of entry. Enter prices carefully so distance-to-stop and distance-to-target stay positive.