Use a structural stop
The stop should reflect thesis invalidation, not a number selected only to improve the ratio.
ADVISORY TOOLS / RISK–REWARD
Measure reward against the full planned risk.
Enter the exact entry, stop, target, quantity and your own cost estimate to see a cost-adjusted reward-to-risk ratio and mathematical break-even win rate.
DECISION-MATH TOOL
Risk–Reward Calculator
COST-ADJUSTED OUTPUT
Estimated reward for each ₹1 at risk₹2.64
Estimated net reward is at least equal to total planned risk
Risk per unit₹5
Reward per unit₹15
Gross price risk₹500
Gross potential reward₹1,500
Total risk incl. costs₹550
Net reward after costs₹1,450
Reward : risk2.64 : 1
Break-even win rate27.50%
DirectionLong
This calculator uses your estimates and does not predict target probability or guarantee stop execution. Actual charges, spread, slippage and gaps can differ.
HOW TO READ THE OUTPUT
A strong-looking ratio still needs a valid market thesis.
Use a realistic target
Potential reward should come from market structure and the intended holding period.
Include execution costs
Spread, slippage, brokerage and taxes reduce realised reward and can increase loss.
Review realised results
The planned ratio does not show target probability; track average realised gains and losses.
Calculation scope
The output is educational decision math. It does not estimate the probability of success and cannot include every charge, gap, liquidity condition or execution outcome.