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Risk/Reward Calculator

Three numbers tell you whether the trade is even worth taking. Set your entry, stop, and target. We'll do the math and show you the win rate you actually need.

$
$
$
Risk/Reward (R-multiple)
3.00R
Risk $1 to make $3.00
Break-even win rate
25.0%
Win this often or better and the trade is profitable over time
Risk per share
$2.00
Stop is 4.00% below entry
Reward per share
$6.00
Target is 12.00% above entry

Educational only. Not financial or trading advice. Calculator does not account for slippage or fees.

Expected return per dollar risked

At your R-multiple, here's what you net (in $) for every $1 you risk, at common win rates:

Win rateNet per $1 riskedOutcome

What R-multiple actually means

R is the ratio between what you stand to make and what you stand to lose on a trade. If your stop is $2 below your entry and your target is $6 above, your R is 3 — you risk $1 to make $3. R is the only number that lets you compare a trade in $50 stock against a trade in a $5 stock against an options play. It strips out the dollar amount and leaves the shape of the trade.

R-multiple beats win rate

New traders chase win rate. Experienced traders chase R. Here's why: at 3R, you only need to win 25% of the time to break even. At 1R, you need to win 50%. At 0.5R, you need to win 67%. The higher your R, the more your strategy can survive a bad week, a bad month, a misread setup. The math works for you instead of against you.

This is also why "I'm right 70% of the time" is not the flex traders think it is. If you take 0.3R trades, you need to be right 77% of the time just to break even. Most aren't, over a long-enough sample.

Common mistakes

Track whether your real R matches your planned R

Most traders plan trades at 3R and exit them at 1R. Kyra Trading detects that gap in your own data: planned vs realized R-multiple, win rate by setup tag, what you actually do under different emotional states. On-device, no account, no AI coach.

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