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Risk Reward Ratio Calculator India 2026 – Trade Setup

Use this free Risk Reward Ratio Calculator in India to assess every trade before you enter — ensure you are always risking less than you stand to gain.

Calculate the risk/reward ratio for any trade or investment decision.

Entry Price ($)

Stop Loss ($)

Target Price ($)

Position Size (shares)

Account Size ($)

Win Rate Estimate (%)

Currency

Risk / Reward Ratio

Max Risk ($)

Max Reward ($)

Risk % of Account

Expected Value / Trade

Min Win Rate Needed

Kelly Criterion

What is Risk/Reward Ratio?

The risk/reward ratio compares potential loss to potential gain on a trade. A 1:2 ratio means risking $1 to make $2. Professional traders require at least 1:2 and use expected value to evaluate profitability over many trades.

Formula

Risk = (Entry - Stop) x Shares Reward = (Target - Entry) x Shares R/R = Reward / Risk EV = (WinRate x Reward) - (LossRate x Risk) Min Win = Risk / (Risk + Reward)

Examples

US stock — Entry $100, Stop $92, Target $120, 100 shares, 55% win rate

Risk=$800 | Reward=$2,000 | R/R=2.5:1 | Min Win=28.6% | EV=+$740/trade

Forex — Entry 1.2500, Stop 1.2450, Target 1.2650

Risk=50 pips | Reward=150 pips | R/R=3:1 | Even 25% win rate is profitable

Example — United Kingdom (FTSE stock)

Entry £4.20, Stop £3.90, Target £5.10. Risk: £0.30/share | Reward: £0.90/share | R:R = 1:3 | Min win rate: 25%

Why Use This?

With a 1:3 R/R, you only need 25% of trades to win to be profitable long-term. Professionals focus on R/R first, not win rate.

What is a good R/R ratio?▼

Minimum 1:2 for most traders. Many use 1:3. Even 1:1.5 can work with a 60%+ win rate.

What is the Kelly Criterion?▼

Kelly = (WinRate x (R/R+1) - 1) / R/R — optimal fraction of capital to risk for maximum long-term growth. Use half-Kelly for safety.

Should I ever widen my stop loss?▼

Never widen a stop to avoid being stopped out. Take the small loss and preserve capital for better setups.

Tip: A 40% win rate with 1:3 R/R yields: (0.4x3)-(0.6x1) = +0.6 units expected profit per trade.