Stocks and trading
Risk-reward calculator
Compare how far a stop-loss and a target are from your entry, and the win rate that breaks even.
Optional. A figure you type, only to work out an average result. Leave it empty to skip.
Counts STT, brokerage, exchange fees, GST and stamp duty from the broker’s published plan.
Charges use the rates this broker publishes for an ordinary account, on NSE. Your own plan may differ.
The target is 2 times as far from the entry as the stop-loss, a ratio of 1 : 2. Wins and losses cancel out at a win rate of 33.3%, before charges.
- Risk-reward ratio
- 1 : 2The target is 2 times as far from the entry as the stop-loss.
- Risk if stopped out
- ₹500₹5.00 a share, before charges
- Reward if target hits
- ₹1,000₹10.00 a share, before charges
Break-even win rate
- Before chargesShare of trades that must reach the target for wins and losses to cancel out
- 33.3%
- After chargesCharges make the target smaller and the loss bigger
- 35.8%
- Charges if stopped out
- ₹37.07
- Charges if target hits
- ₹38.63
Charges worked out for delivery trading on NSE with Zerodha’s published plan.
Average result per trade at 40%
- Before charges
- +₹100.00
- After charges
- +₹62.31
This uses the win rate you typed and assumes every trade ends at the stop-loss or the target. It says nothing about what win rate is typical or what yours will be.
What this assumes
- Every trade ends exactly at the stop-loss or exactly at the target, with no partial exits.
- Each trade is treated as separate from the one before it.
- The ratio describes distances you chose. It does not say how likely the target is to be reached.
- This describes the figures you entered. It does not predict what comes next.
What next
- Work out how many shares a trade involves if you decide in advance how much you can afford to lose.
Brokerage
See every charge on a trade, from brokerage to taxes, and what you actually keep.Margin
See the exposure, the leverage and the price move that would use up your margin on a leveraged position.Average price
Find the weighted average price of several buys, and what it takes to reach a target average.
How it works
Risk is the rupee loss if the price reaches your stop-loss. Reward is the rupee gain if it reaches your target. The ratio compares the two distances, and the break-even win rate follows from it.
Ratio = Reward / Risk. Break-even win rate = Risk / (Risk + Reward)
A worked example
Buy 100 shares at 100 with a stop-loss at 95 and a target at 110. The risk is ₹500 and the reward is ₹1,000, a ratio of 1 : 2. If wins and losses are the only outcomes, you break even when 33.3% of trades reach the target. If you assume 40 percent of trades win, the average result per trade is 0.4 x ₹1,000 - 0.6 x ₹500 = +₹100.00. The 40 percent is a figure you type, not a claim about any strategy.
With charges included, a stopped-out trade costs a little more and a winning trade pays a little less, so the break-even win rate rises. The page works out the charges for both outcomes separately.
What it leaves out
- How likely the target is to be reached before the stop-loss. The ratio is only about distances.
- Trades that end somewhere between the stop-loss and the target, or are exited in parts.
- Slippage and gaps, where an order fills away from the price you set.
- Tax on profits.
Questions people ask
What is a good risk-reward ratio?
There is no ratio that is good on its own. A wider target needs fewer wins to break even, but a distant target is also reached less often. The page shows the win rate your ratio needs, and you decide whether that suits your own judgement.
What does break-even win rate mean?
It is the share of trades that must reach the target, with the rest hitting the stop-loss, for the total result to be zero. At a ratio of 1 : 2 that is one trade in three. Above it the average is a gain, below it the average is a loss, on these numbers.
Where does the win rate come from?
From you. This site holds no figures on how often any approach works, so the win rate is an assumption you type to see the average result. Try several values to see how sensitive the result is.
Why does including charges change the break-even win rate?
Charges are paid whether the trade wins or loses. They shrink the reward a little and enlarge the loss a little, so a larger share of trades must win to cancel out. On a small trade with a tight stop the effect can be large.
Why is the expected value labelled as an average?
It is the result you would get on average over many trades if your assumed win rate held and every trade ended at the stop-loss or the target. Any single trade ends in one of two outcomes, never in the average.
Where the numbers come from
- Zerodha: published charges page
- Groww: published charges page
- Upstox: published charges page
- Angel One: published charges page
- NSE circular NSE/FATAX/20990 (12 Jun 2012), STT rates from 1 Jul 2012
- NSE circular NSE/FATAX/23500 (24 May 2013), STT rates from 1 Jun 2013
- NSE circular NSE/FATAX/32385 (16 May 2016), STT rates from 1 Jun 2016
- NSE circular NSE/FATAX/56235 (1 Apr 2023), STT rates from 1 Apr 2023
- NSE circular NSE/FATAX/63809 (9 Sep 2024), STT rates from 1 Oct 2024
- NSE circular NSE/FATAX/73524 (31 Mar 2026), STT rates from 1 Apr 2026
- Zerodha bulletin: uniform stamp duty from 1 Jul 2020
- SEBI (Payment of Fees) (Amendment) Regulations 2019, Gazette 22 Mar 2019, in force 1 Apr 2019
- Motilal Oswal: GST in stock broking (18%, applied from July 2017)
- NSE circular NSE/FA/64232 (27 Sep 2024), uniform transaction charges from 1 Oct 2024
- NSE circular NSE/FA/73061 (27 Feb 2026), transaction charges and IPFT revision from 1 Mar 2026
- Zerodha bulletin: revision in transaction charges from 1 Oct 2024 (NSE and BSE)
