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Compare entry, stop and target prices to calculate the price-distance ratio and break-even win rate before costs.
Processed locally in this browser tab. No input is sent to an external service.
Compare entry, stop and target prices to calculate the price-distance ratio and break-even win rate before costs.
A mathematical scenario, not a recommendation. Fees, slippage, execution and actual win probability are not included.
Compare entry, stop and target prices to calculate the price-distance ratio and break-even win rate before costs.
A mathematical scenario, not a recommendation. Fees, slippage, execution and actual win probability are not included.
A mathematical scenario, not a recommendation. Fees, slippage, execution and actual win probability are not included.
Assessing risk-reward mechanics and break-even probabilities is critical for establishing sound trade setups before placing market orders. This calculator processes an entry price, stop-loss price, and target price using absolute distance formulas. Absolute risk equals '|entry - stop|' and absolute reward equals '|target - entry|'. The tool computes the reward-to-risk ratio alongside the pre-cost break-even win rate via 'risk / (risk + reward) * 100' across symmetrical trading directions.
Consider a hypothetical setup with an entry at $100, a protective stop at $95, and a profit objective at $115. Absolute risk is $5 (|100 - 95|) and potential reward is $15 (|115 - 100|), delivering a 3.0 ratio (1:3). Evaluating pre-cost break-even probability via '5 / (5 + 15) * 100' yields exactly 25.0%. Conversely, a target of $105 produces a 1:1 ratio requiring a 50.0% win rate before trading expenses.
This ratio calculator provides structural mathematical metrics and does not constitute trading recommendations or financial advice. Brokerage fees, exchange commissions, taxes, and order slippage are omitted, raising real-world break-even thresholds. The model does not validate trade direction and outputs nothing if stop or target matches entry. Calculations process strictly within your browser without sending inputs remotely.
If either price equals the entry price, the risk or reward distance becomes zero. Under these conditions, the calculator displays no results until distinct price points are provided.
No, the tool computes absolute distance differences without checking trade orientation. Users must manually ensure their target and stop prices align logically with their chosen long or short strategy.
No, the break-even percentage is a gross calculation that excludes broker commissions, exchange transaction fees, and slippage. Real-world execution requires higher win rates to overcome overhead friction.