Risk Reward Ratio Target Calculator

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; for a short position, the same distance is subtracted instead.

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.

This calculator takes your entry price, stop-loss and desired reward-to-risk ratio, and returns the exact target price to aim for.