Crypto risk reward calculator

How the calculation works

Reward to risk = net target gain ÷ fee-inclusive stop loss. Break-even win rate = stop loss ÷ (stop loss + net target gain).

Worked example

Example: a long at 100 with a stop at 95 and a target at 110 risks 5 to gain 10 before fees. Reward to risk is 2:1 and the break-even win rate is 33.33%.

How to use the result

A long needs a stop below entry and target above entry. A short reverses those relationships. The target must still produce a positive reward after fees.

The break-even win rate assumes every win and loss matches these amounts. An actual trading record can have different fills, partial exits and costs.

What this result leaves out

• The result does not predict a win rate or the chance of reaching a target.
• Slippage, gaps, funding, borrowing and liquidation are excluded.

Method and sources

• Kraken: risk and reward planning

Calculation method reviewed 23 October 2026. This is an estimate from your inputs, not investment or tax advice.