Risk/Reward Calculator
Calculate your potential profit compared to your maximum possible loss before entering a trade.
The Risk/Reward Calculator helps crypto traders evaluate whether a trade setup is statistically worth taking. By comparing stop loss distance to take profit distance, traders can quickly measure expected reward relative to risk.
Trade Parameters
Calculation Results
LONG • BTC/USDTRisk / Reward Ratio
1 : 2.00
Req. Win Rate to Break-Even: 33.3%
Risk Distance
$3,000
-2.86% from entry
Reward Distance
$6,000
+5.71% from entry
Potential Max Loss
-$100.00 USDT
1% of Balance
Potential Max Profit
+$200.00 USDT
2.00% Return
Trade Setup Rating
Good (Target Range)
How Calculations Work
Step 1 — Risk Distance
Long: Entry - Stop Loss | Short: Stop Loss - Entry
Example: Long setup with Entry = 105,000 and SL = 102,000 gives 3,000 USDT (2.86% Risk).
Step 2 — Reward Distance
Long: Take Profit - Entry | Short: Entry - Take Profit
Example: Long setup with Entry = 105,000 and TP = 111,000 gives 6,000 USDT (5.71% Reward).
Step 3 — Risk/Reward Ratio
R:R Ratio = Reward Distance / Risk Distance
Example: 6,000 / 3,000 = 2.00 (Displayed as 1 : 2.00).
Step 4 — Break-Even Win Rate
Required Win Rate % = (1 / (1 + R:R)) × 100
Example: 1 / (1 + 2) = 33.33% Win Rate required to remain profitable over time.
What Is Risk/Reward Ratio?
Risk/Reward Ratio measures how much potential profit a trade offers compared to its possible loss.
A good trade setup usually aims for higher reward than risk. For example, risking $100 to potentially make $300 creates a 1:3 risk/reward ratio.
This helps traders remain profitable even if not every trade wins.
Why Risk/Reward Matters
Many traders focus only on win rate, but risk/reward ratio is equally important for long-term profitability.
A trader with a 40% win rate and a consistent 1:3 risk/reward ratio will remain profitable over time.
Proper risk/reward planning helps:
- •Improve trading consistency
- •Prevent emotional trading decisions
- •Filter out low-quality trade entries
- •Build sustainable trading systems
- •Control portfolio downside exposure
Recommended Risk/Reward Ratios
| Trading Style | Suggested Ratio |
|---|---|
| Scalping | 1:1 – 1:1.5 |
| Day Trading | 1:2 |
| Swing Trading | 1:2 – 1:4 |
| High Probability Setups | 1:3+ |
Common Mistakes
Common risk/reward mistakes include:
- •Using unrealistic take profit targets
- •Moving stop losses emotionally
- •Entering trades without predefined exits
- •Taking trades with poor reward potential
- •Ignoring market volatility
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Example Trade Calculation
Example Data
- Pair: BTC/USDT
- Position Type: Long
- Entry Price: $105,000
- Stop Loss: $102,000
- Take Profit: $111,000
Calculation Result
- Risk Distance: $3,000 (2.86%)
- Reward Distance: $6,000 (5.71%)
- R:R Ratio: 1 : 2.00
- Req. Win Rate: 33.33%
- Setup Quality: Good
Crypto Risk Reward Calculator
The ByNinja Risk/Reward Calculator is a free crypto trading tool for Binance futures traders. It helps calculate risk exposure, profit potential, and trade quality before opening a position.
Useful for:
- •Bitcoin futures trading
- •Ethereum leverage trading
- •Crypto stop loss planning
- •Take profit optimization
- •Trade setup validation
Build Better Trade Setups
Calculate trade quality before entering the market and improve long-term consistency using structured crypto risk management.