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Risk/Reward Ratio Calculator

Enter your entry, stop, and target and see the ratio, dollar risk, and dollar reward before you place the trade — not after.

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READOUT ●

Contract specs reflect standard CME Group multipliers and are for informational use only — always confirm tick value and fees with your broker. This tool does not account for commissions or slippage. Not financial advice.

How to read your risk/reward ratio

Risk/reward compares how much you stand to lose against how much you stand to gain on a single trade, expressed as a ratio like 1:2. A 1:2 ratio means you're risking one dollar to potentially make two. It says nothing about your odds of winning — that's a separate number (your win rate) that you track from your own trade history.

The two numbers work together. A strategy with a 1:1 ratio needs to win more than half its trades to be profitable after costs. A strategy with a 1:3 ratio can be profitable winning only a third of the time. Neither ratio is inherently "correct" — it depends on which one matches how your setup actually performs.

Frequently asked

What is a good risk/reward ratio for futures trading?

Many traders target at least 1:2, meaning the potential reward is at least twice the amount risked, so a trade can still be profitable over time even with a win rate below 50%. There's no universally correct ratio — it depends on your win rate and strategy.

How is risk/reward ratio calculated in futures?

Divide the distance from entry to your profit target by the distance from entry to your stop loss, both measured in ticks or dollars using the contract's tick value. This calculator does that conversion automatically.

Does risk/reward ratio account for commissions?

No — this tool measures raw price risk and reward only. Commissions and fees reduce your actual reward and should be factored in separately, especially on micro contracts where fees are a larger share of the trade.