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Risk Reward Ratio Target Calculator

Enter your entry price, stop-loss and desired reward-to-risk ratio to find the exact target price to aim for.

How it is calculated

This works for long trades only: the stop must be below the entry, otherwise no result is returned. Enter the entry price, the stop price and the reward-to-risk ratio you want (3 for 3:1). The tool computes risk = entry − stop, reward = risk × ratio and target = entry + reward, all in price per share. It also shows the win rate needed to break even at that ratio, 1 / (1 + ratio), as a percentage, ignoring fees and slippage. For a short trade the same logic applies mirrored (target below entry), but you must work that out by hand as the tool does not accept it.

Worked example

Buy at 120 with a stop at 114 and aim for 3:1. Risk = 120 − 114 = $6.00 per share. Reward = 6 × 3 = $18.00 per share. Target = 120 + 18 = $138.00. At 3:1 you break even if you win 1 / (1 + 3) = 25.00 % of trades, before costs. Any win rate above that earns money on average, any below loses money.

Try this example →

Common mistakes

  • Entering a stop above the entry for a short trade: the tool is built for longs and returns nothing.
  • Entering the ratio as 1:3 instead of 3: a ratio of 0.33 would give a target barely above the entry.
  • Treating the target as likely to be reached: a high ratio needs a distant target, and distant targets are hit less often.
  • Reading the breakeven win rate as a goal: it is only the point where results cancel out, before fees.
  • Placing the stop where it is convenient for the ratio, not where the trade idea is proven wrong.

About this calculator

The risk-reward ratio compares how much a trader stands to gain against how much they stand to lose on a trade, and this calculator works in the opposite direction from a typical R:R calculation — instead of measuring the ratio after picking a target, it finds the exact target price needed to hit a chosen ratio. For a long position, target price = entry price + (entry price − stop-loss price) × desired R:R ratio. The calculator handles long positions only, so the stop-loss must sit below the entry price; for a short position the same distance would be subtracted instead, which you would work out by hand.

Traders set a minimum acceptable reward-to-risk ratio, commonly 2:1 or 3:1, as a filter for which setups are worth taking — a strategy with a 2:1 minimum ratio can be profitable even with a win rate below 50%, because winners are sized to outweigh losers. Knowing the exact target price in advance also removes the temptation to move a target impulsively while the trade is open, which is one of the more common ways discretionary traders erode their edge.

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