A planned target can look attractive before fees and become a smaller reward relative to the stop after you account for the modeled entry and exit charges. The crypto risk-reward calculator subtracts estimated fees from the target move and adds them to the stop risk, then reports the net ratio and the win rate needed to break even under that ratio. Use it to compare a specific entry, stop, and target; it does not predict whether the trade will reach any of those prices.
What the calculator counts as risk and reward
For a long trade, the stop is below entry and the target is above it. For a short trade, the stop is above entry and the target is below it. The calculator accepts the prices and a fee percentage for each side of the modeled round trip. It does not take position size as an input, so risk and reward are expressed per unit of price movement in the same quote currency as the entered prices.
The calculator's implementation uses these equations, where f is the entered percentage divided by 100:
net reward = |target − entry| − f × (entry + target)
net risk = |entry − stop| + f × (entry + stop)
risk-to-reward ratio = net reward ÷ net risk
break-even win rate = net risk ÷ (net risk + net reward) × 100
expected value in R = win probability × ratio − loss probability
The fee term includes one modeled charge at entry and one at exit, using the entry price and the relevant exit price. The stop-side cost uses the stop exit; the target-side cost uses the target exit. The risk/reward page labels the reported ratio as reward relative to risk: a ratio of 1.88 means the modeled net reward is about 1.88 times the modeled net risk. This is distinct from the reciprocal convention some traders use when they write risk first, so check which order a chart or journal uses before comparing numbers.
This is a simplified estimate. It does not model slippage, spread, funding, liquidation, partial fills, taxes, or changing fee tiers. Its fee input is a percentage, and the calculator applies that same rate to both entry and exit. If your actual entry and exit fees differ, or your venue charges additional costs, the output will not represent those differences automatically.
Worked example: a $100 entry, $95 stop, and $110 target
Suppose a long setup has an entry at $100, a stop at $95, and a target at $110. Enter a fee of 0.1% per side and a win-rate assumption of 40% if you also want to see the expected-value output. The calculator converts 0.1% to 0.001 for the calculation.
Before fees, the price distance to the target is $10 and the distance to the stop is $5. The fee adjustment on the target path is 0.001 × ($100 + $110), or $0.21. On the stop path it is 0.001 × ($100 + $95), or $0.195. That gives:
net reward = $10 − $0.21 = $9.79
net risk = $5 + $0.195 = $5.195
ratio = $9.79 ÷ $5.195 = 1.8845…
break-even win rate = $5.195 ÷ ($5.195 + $9.79) × 100
= 34.668…%
The calculator displays about 1.88 reward per 1 risk and a break-even win rate of about 34.67%. For comparison, with zero fees the same distances produce a 2.00 ratio and a break-even win rate of 33.33%. The input fee compresses the target-side reward and expands the stop-side loss, so both outputs change even though the entry, stop, and target prices did not.
The 40% win-rate input in this illustration produces a positive modeled expected value of about 0.154R per trade: 0.40 × 1.8845 − 0.60. That is only an arithmetic result conditional on the assumed win rate and payoff. It does not establish that a real strategy has a 40% win rate, that outcomes are independent, or that all winning trades exit at the target and losing trades at the stop. The tool's ratio itself does not need a win-rate assumption; the break-even rate is derived from the modeled net risk and reward.
How to apply it to a planned setup
Use the calculator and enter the intended entry, stop, target, fee percentage, and—if you want its expected-value estimate—your own win-rate assumption. Confirm whether the selected direction is consistent with the price levels. A long setup needs the stop below and the target above entry; a short setup needs the reverse. Invalid or crossed levels do not describe the intended one-stop/one-target trade and may return no result.
Use the fee rate that reflects the type of execution you expect, while remembering that this tool uses one rate on both sides. If you are comparing two setups at the same venue and order type, holding the fee input constant can help isolate the effect of moving the stop or target. If your entry and exit would use different rates, treat the output as a rough comparison and calculate the two costs separately in your own trade plan.
The take-profit and stop-loss calculator can map a stop distance to 1R, 2R, or 3R target levels. The position-size calculator can estimate quantity from account equity, a risk percentage, and the entry-to-stop distance with its own fee model. The crypto profit calculator addresses spot trade profit and separate buy/sell fees. Each tool answers a related but different question; do not assume their outputs are interchangeable unless their inputs and fee assumptions match.
Common mistakes
- Reading the ratio in the wrong order. This calculator returns reward divided by risk. A 1.88 result means 1.88 units of net reward per one unit of modeled net risk.
- Entering
0.001for a 0.1% fee. The field is a percentage, so enter0.1. The formula then divides it by 100. - Using the raw price distances as the final result. Fees reduce reward and increase risk in the model. The unadjusted $10 and $5 distances do not produce the displayed fee-adjusted ratio.
- Treating break-even win rate as a forecast. It is the win rate implied by the entered payoff ratio under a simplified outcome model, not a prediction of your actual results.
- Assuming the model knows position size or leverage. It does not ask for either. A per-unit ratio is not the dollar amount at risk on your account; position size and contract mechanics matter for that.
- Forgetting costs outside the fee field. Funding, slippage, spread, liquidation effects, partial exits, and taxes are excluded. Add them to a separate plan if they apply.
- Comparing trades with inconsistent assumptions. Different fee rates or different exit behavior can make otherwise similar outputs hard to compare. Keep the assumptions visible beside the result.
FAQ
Does the fee input apply to both entry and exit?
Yes. The calculator applies the entered percentage to the entry price and to the relevant stop or target exit price. It does not accept separate entry and exit rates.
Why does the ratio get worse when I add a fee?
The calculator subtracts the modeled round-trip fee amount from reward and adds it to risk. A positive fee therefore reduces the numerator and increases the denominator.
What does a 1.5 risk-reward result mean here?
It means modeled net reward is 1.5 times modeled net risk. It does not mean the probability of winning is 1.5 or that a trade has a 1.5-to-1 chance of success.
Can the break-even win rate guarantee a profitable strategy?
No. It is a simplified threshold based on the entered reward and risk. Real trades can exit between the planned levels and incur costs the model excludes.
Why does the calculator reject my entry, stop, or target?
The tool requires positive prices, a stop on one side of entry, and a target on the other. If the target is on the same side as the stop, it cannot evaluate the intended setup.
Not financial advice. This is a planning calculation, not a recommendation to enter a trade.