Risk-Reward Ratio Calculator: Break-Even Win Rate, Fees, and Slippage
Reward-to-risk ratio compares the potential gain at a target with the modeled loss at a stop. A 2:1 gross ratio means two dollars of price reward for each dollar of price risk, but fees and adverse execution can reduce the net ratio and raise the win rate needed to break even. This calculator separates gross price distances from net dollar outcomes, then estimates break-even win rate, expectancy, account impact, cost-adjusted 2R and 3R targets, win-rate sensitivity, and slippage stress for long or short stock scenarios. A stop price is not a guaranteed fill and a target is not guaranteed to execute. Quick answer Gross reward-to-risk ratio: price reward per share / price risk per share. Net reward-to-risk ratio: potential reward after entered fees and adverse exit slippage / modeled loss after those costs. Break-even win rate: net risk / (net risk + net reward). Binary expectancy: win probability x net reward - loss probability x net risk. A higher ratio does not prove a...