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Crypto Risk Reward Calculator

Check whether a trade's target justifies the risk before you open it.

How it is calculated

The tool is built for a long (buy) trade. It converts both levels to percentage moves from the entry: reward% = (target − entry) ÷ entry and risk% = (entry − stop) ÷ entry. The ratio shown is reward% ÷ risk%, printed as reward to 1 unit of risk (2.00 : 1 means the target is twice as far as the stop). Cash profit and loss are the position size times each percentage, so the position size is the money you commit, not a coin quantity. The break-even win rate is 1 ÷ (1 + ratio). Fees and slippage are ignored. The target must be above the entry and the stop below the entry and above zero, otherwise there is no result.

Worked example

You buy at 60,000 with a target of 66,000 and a stop at 57,000, committing 2,000. Reward = (66,000 − 60,000) ÷ 60,000 = 10%. Risk = (60,000 − 57,000) ÷ 60,000 = 5%. Ratio = 10 ÷ 5 = 2.00 : 1. Potential profit = 2,000 × 10% = $200.00 and potential loss = 2,000 × 5% = $100.00. Break-even win rate = 1 ÷ (1 + 2) = 33.33%, so you need to win about one trade in three to not lose money.

Try this example →

Common mistakes

  • Entering the number of coins as position size; the field is the amount of money in the trade.
  • Trying a short trade (target below entry, stop above it): the tool only accepts long setups and gives no result.
  • Reading 2.00 : 1 as risking 2 to make 1; the figure is reward per 1 of risk.
  • Treating a good ratio as a good trade: a 3 : 1 ratio still loses money if the setup wins far less often than the break-even rate.
  • Placing the stop where the price will not realistically trade, which makes the ratio look attractive without making the trade safer, and forgetting that fees and slippage shrink the real reward.

About this calculator

The risk-reward ratio of a trade compares potential loss to potential gain: Risk = Entry Price - Stop Loss, Reward = Take Profit - Entry Price, and the ratio is shown as reward per 1 unit of risk (for example, 3.00 : 1 means risking 1 dollar to potentially make 3 dollars). It is built for long trades, so the take profit must sit above your entry and the stop loss below it. From that ratio you can also derive the break-even win rate — the minimum percentage of trades that need to win for the strategy to not lose money over time: Break-even Win Rate = Risk divided by (Risk + Reward).

Crypto traders lean on this ratio more than in most markets because of how volatile and thinly-traded many tokens are — a common guideline is not entering a trade unless the reward is at least 2-3x the risk, since that cushions a strategy against a losing streak that any high-volatility asset can produce. Knowing the break-even win rate up front also reframes the question from whether a single trade will work to how often a setup needs to be right to be profitable overall — a much more answerable question based on a trader’s historical hit rate.

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