1
Set your entry
The price you actually plan to get filled at — not the one you hope for.
MOMENTUM CALCULATOR
Momentum Calculator
Calculate your R:R ratio, potential profit, and the win rate you need before entering any trade.
POSITION TYPE
TRADE SETUP
Reward ÷ Risk · (Take profit − Entry) ÷ (Entry − Stop)
RISK / REWARD ANALYSIS
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Risk : Reward
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Potential Loss
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Potential Profit
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Risk per Unit
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TP Gain
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Win Rate Needed
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Entry Price
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Stop Loss
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Take Profit
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STOP 5% / 7% · TARGET 10% / 20%
Stop stays at 5% or 7% of entry, target at 10% or 20%. Change the entry and those prices follow. Type a custom stop or target to unlock.
How to calculate risk to reward
2
Place the stop
Put it where the trade idea is wrong. Below support for longs, above resistance for shorts. Never move it just to dress up the ratio.
3
Pick a real target
Use prior highs, lows, or supply and demand. A 1:5 that never fills is worse than a 1:2 that does.
4
Read the math
You get the R:R, dollar risk and reward, and the win rate you need before the trade is even on.
What is a good risk to reward ratio?
Most traders aim for a minimum of 1:2 — two dollars of potential profit for every dollar at risk. Higher ratios give you more room to be wrong and still finish green.
| R:R ratio | Min win rate | What it means |
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Why ratio beats win rate
A 1:3 book only needs to win one trade in four to break even. You can be wrong three times and still not lose money. A trader at 40% wins and 1:3 will out-earn an 80% sniper who pays 1:0.5. The math always prefers a fatter target, even with fewer trophies on the board.
Common mistakes
Moving the stop to force a better ratio
Your stop belongs where the setup is invalid, not where the spreadsheet looks pretty.
Fantasy take-profit levels
Targets have to live at actual price structure. Chasing a 1:5 into empty air is how winners turn into scratches.
Skipping R:R entirely
If you don’t know what you stand to make versus lose, you don’t have an edge — you have a guess.
Worshipping win rate
A 70% win rate at 1:0.5 still bleeds. Ratio and hit rate have to work together.
Frequently asked
How do you calculate risk to reward?
Divide the distance from entry to take profit by the distance from entry to stop. Buy at $100, stop at $95, target at $115: you risk $5 to make $15 — that’s 1:3.
What is a good risk to reward ratio?
Most discretionary traders want 1:2 or better. At 1:2 you can be wrong on two of every three trades and still break even. 1:3 gives even more room.
Is a 1:1 ratio profitable?
Only if you win more than half the time after fees. Scalps can live there. Most swing and breakout books are easier at 1:2+.
How does win rate change the picture?
Higher R:R means you need fewer winners. 1:1 needs >50%. 1:2 needs 33%. 1:3 needs 25%. That’s why a 40% win rate at 1:3 beats an 80% win rate at 1:0.5.
Should I skip a trade under 1:2?
If your playbook really does win 60%+, 1:1.5 can still pay. For everything else, under 1:2 is usually not worth the heat.
Disclaimer
Momentum Calculator is an educational planning tool. It is not investment, financial, tax, or trading advice, and it is not a recommendation to buy, sell, or hold any stock, option, crypto, or other security. The risk-to-reward figures, win rates, and dollar amounts are hypothetical math from the numbers you type — they do not account for fees, slippage, liquidity, overnight gaps, or how a live market actually fills.
Trading stocks and other markets can result in the loss of some or all of your capital. You are solely responsible for your own decisions. Past results and calculator output do not guarantee future performance. If you need advice, talk to a licensed professional who knows your situation. Your numbers stay in this browser; nothing is sent to a server.