Most Practical and Latest Risk Reward ratio calculator with win rate

A risk reward ratio calculator is a trading and investing tool used to assess the potential profit (reward) of a trade relative to its potential loss (risk). It helps traders make informed decisions by ensuring that the potential reward justifies the risk being taken. Risk reward ratio calculator helps in building positive psychology and boost confidence by analysing your break even point and profit for different conditions.

How to use Risk Reward Ratio Calculator

This tool helps traders calculate the total profit/loss, breakeven win rate, and final capital based on their trading strategy using risk-reward principles. This risk reward ratio calculator can be used for managing risk for any market like forex, stock, derivative, crypto etc. but tune your risk reward percentage based on your trading style and market nature. Below step by step instructions are given to use risk reward ratio calculator.

Step by step instruction

1. Total Capital (₹)

• Enter the total amount of capital you are willing to invest.
• Example: 10000

2. Buy Price per Share (₹)

• Input the price at which you plan to buy one share.
• Example: 200

3. Risk per Share (₹)

• Enter the maximum amount you’re willing to lose per share.
• This is typically your Stop Loss.
• Example: 10
• Risk % of Buy Price is shown automatically.

4. Reward per Share (₹)

• Enter your expected profit per share when a trade hits the target.
• Example: 20
• Reward % of Buy Price is shown automatically.

5. Win Rate (%)

• Enter your estimated win rate based on backtesting or strategy confidence.
• This is the percentage of trades you expect to be successful.
• Example: 60

6. Number of Trades

• Input how many trades you plan to take using this strategy.
• Example: 50

7. Click “Calculate” Button

• Once all fields are filled, click “Calculate” to view the results.

Output Summary

After clicking Calculate, the following results are displayed:

• Total Shares Bought: Number of shares that can be bought with your total capital.
• Profit per Winning Trade (All Shares): Total profit if the trade is a win.
• Loss per Losing Trade (All Shares): Total loss if the trade is a loss.
• Total Wins / Losses: Based on your win rate and number of trades.
• Total Profit/Loss: Net profit or loss over all trades.
• Final Capital: Capital after all trades are completed.
• Risk-Reward Ratio: Ratio of reward to risk (e.g., 1:2)
• Break-even Win Rate: Minimum win rate needed to avoid a loss.

Example

Field	Value
Total Capital (₹)	10000
Buy Price per Share (₹)	200
Risk per Share (₹)	10
Reward per Share (₹)	20
Win Rate (%)	50
Number of Trades	30

After clicking ‘calculate’ in risk reward ratio calculator, we will get,

• Total Shares: 50
• Profit per Win: ₹1000
• Loss per Loss: ₹500
• Total Profit/Loss: ₹(depends on win/loss count) Here, 17500 final capital
• Break-even Win Rate: 33.33%
• RRR: 1:2

Notes

• You must enter a valid Buy Price, Risk, and Reward for accurate calculations.
• Fields are validated to prevent errors like division by zero.
• Live risk and reward percentages are shown as a hint to help with quick understanding of the trade setup.
• For money management purpose this risk reward ratio calculator is designed keeping in mind that capital used by traders is same for given number of trades.

Bottom Line

In the fast-paced world of trading, success isn’t just about making the right calls—it’s about managing risk with precision. A Risk-Reward Ratio calculator is an essential tool that empowers traders to evaluate whether a trade setup is statistically favorable before committing capital. By clearly showing how much you stand to gain versus what you could lose, and helping determine your break-even win rate, this calculator promotes disciplined decision-making and consistent profitability. Whether you’re a beginner trying to avoid emotional trades or an experienced trader fine-tuning your edge, integrating a risk-reward mindset can significantly improve your trading outcomes and preserve capital over the long term.

For better understanding check for different tarding strategy conditions(risk-reward, win rate, no. of trade) according to backtest data and use risk reward ratio calculator to know whether you are profitable or not based on that adopt a suitable trading strategy.