Risk-Reward Calculator

Before you place an order, work out how much you lose if it goes wrong, how much you make if it goes right, and whether the trade is even worth it. Enter your direction, entry, stop-loss, take-profit and position size, and you'll get the R:R ratio plus the price move to each level. This is a planning tool — a pretty ratio doesn't mean you'll win, and it's not investment advice.

How it works (long): risk per unit = entry − stop-loss, reward per unit = take-profit − entry, R:R = reward ÷ risk; potential loss = size × (entry − stop-loss) ÷ entry, potential gain = size × (take-profit − entry) ÷ entry. Shorts flip the direction. This tool ignores fees, slippage and funding, and it doesn't account for leverage — with leverage on, your real loss is multiplied. Everything runs in your browser; nothing is uploaded or saved.

How the tool does the math

The risk-reward ratio is just "how much you win if you're right versus how much you pay if you're wrong." On a long, the gap from entry to your stop-loss is the risk, the gap from entry to your take-profit is the target reward, and dividing the second by the first gives your R:R. Say you enter at 100, stop at 95, target 115: that's 5 of risk per unit and 15 of reward per unit, so 3:1 — one win covers three losses. The potential loss and gain just scale that price move across your position size. A short is the same idea flipped: the stop sits above entry and the target sits below.

What it can't tell you: whether this trade wins. 3:1 sounds great, but if you're only right two times out of ten you still bleed money — a ratio can't measure your hit rate, that comes down to your strategy and discipline. It also leaves out fees, slippage and leverage: with contract leverage on, a blown stop can multiply your real loss several times over. To see how to actually place the exit orders, read OCO vs. take-profit/stop-loss orders and the full order-type guide.

How to turn the number into a decision

A lot of traders draw a line: any setup below a certain ratio (say 2:1) just doesn't get taken. Use it first to filter out plans that risk a lot to make a little, then size the position against the single-trade loss you can actually stomach — don't let one order's potential loss get big enough to cost you sleep. To work backward from that to the right position size, pair it with the position / margin calculator. These are planning tools only, and none of it is investment advice.

This page is not investment advice. Reference: Binance Support Center.

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Position / margin calculator How to use OCO and TP/SL orders