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Risk/Reward Calculator
Estimate reward-to-risk ratio for an investment or trade.
About This Calculator
Risk/reward ratio compares how much you stand to gain versus how much you stand to lose on a trade. A 3:1 risk/reward ratio means you risk $1 to potentially make $3. Disciplined traders often require minimum 2:1 or 3:1 ratios before entering a position, regardless of how confident they feel.
Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.
R:R ratio = (target − entry) ÷ (entry − stop); dollar gain = gain per share × shares; dollar risk = loss per share × shares
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