This free Excel risk reward calculator spreadsheet lets you evaluate any trade setup before committing capital. Enter your entry price, stop loss, and profit target to instantly see the R:R ratio, the minimum win rate needed to stay profitable, and the expected value per trade. Download it and start filtering setups by math, not gut feeling.
What’s Included
- R:R Ratio Calculator (Sheet 1) — Input entry, stop loss, and target in cells B2-B4 to get an automatic risk reward ratio in B6. Works for long and short trades.
- Required Win Rate Formula — Cell B7 calculates the exact breakeven win rate for your R:R ratio using the formula
1 / (1 + R:R), so you know whether a setup fits your historical performance. - Expected Value Calculator — Enter your actual win rate in B8 and the spreadsheet computes your expected value per dollar risked in B9. Positive values mean the trade has edge.
- Visual R:R Bar Chart — A conditional bar chart updates in real time as you adjust parameters, giving you an instant visual read on risk versus reward.
- Multi-Trade Comparison Tab (Sheet 2) — Evaluate up to 10 trade setups side by side. Each row accepts entry, stop, and target prices with auto-calculated R:R, win rate requirement, and EV.
- Position Sizing Fields — Optional fields for account size and risk percentage that calculate the appropriate share count or lot size based on your stop distance.
How to Use
Step 1: Enter Your Trade Parameters
Open the calculator and enter your planned entry price in cell B2, your stop loss in B3, and your profit target in B4. For short trades, the entry price should be higher than the target. The spreadsheet handles both directions automatically.
Step 2: Review the Calculated Ratios
Cell B6 displays your risk reward ratio. Cell B7 shows the minimum win rate required to break even at that ratio. If your historical win rate on similar setups is below that threshold, the trade does not have a statistical edge.
Step 3: Compare Multiple Scenarios
Switch to Sheet 2 to test different stop loss and target combinations for the same entry. This is particularly useful when deciding between a tight stop with a modest target versus a wider stop with a larger target. The side-by-side layout makes the tradeoff clear.
Step 4: Adjust Position Size
If you use the optional position sizing fields, enter your total account value and the percentage you are willing to risk per trade. The spreadsheet calculates the maximum number of shares or contracts based on the distance between your entry and stop loss. For a more detailed position sizing workflow, see the position sizing calculator.
Key Benefits
- Pre-trade filtering — Eliminate setups that do not meet your minimum R:R threshold before placing an order
- Breakeven clarity — Know the exact win rate required for any setup to be profitable over time
- Scenario testing — Compare multiple stop and target combinations without recalculating manually
- Risk alignment — Position sizing fields ensure your share count matches your actual risk tolerance
Template vs JournalPlus App
| Feature | This Template | JournalPlus App |
|---|---|---|
| R:R Calculation | Manual entry per trade | Auto-calculated from trade data |
| Win Rate Tracking | Formula-based estimate | Real win rate from actual results |
| Expected Value | Per-trade projection | Portfolio-wide EV with historical data |
| Visual Charts | Basic bar chart | Interactive R:R distribution charts |
| Trade Import | Manual entry | Automatic from 50+ brokers |
| Historical Analysis | Limited to entered trades | Full trade history with filters |
| Price | Free | $159 one-time |
This spreadsheet is a solid pre-trade planning tool. When you want your R:R calculations built from actual trade results with automatic imports and historical performance data, JournalPlus picks up where the spreadsheet leaves off.
Download
Download the free risk reward calculator spreadsheet and start evaluating every setup before you trade. No account required.
Frequently Asked Questions
What is a good risk reward ratio for trading?
Most professional traders target a minimum 1:2 risk reward ratio, meaning the potential profit is at least twice the potential loss. A 1:3 ratio or higher gives more room for a lower win rate while remaining profitable.
How do you calculate risk reward ratio in Excel?
Subtract your entry price from your stop loss to get risk, and subtract your entry price from your target to get reward. Divide reward by risk. This Excel risk reward calculator template automates that formula so you only need to input three prices.
What win rate do I need to be profitable with a 1:2 risk reward ratio?
With a 1:2 R:R ratio, you need to win at least 34% of your trades to break even. This calculator shows the exact breakeven win rate for any R:R ratio you input.
Can I use this risk reward calculator for options trading?
Yes. Enter your planned entry premium as the entry price, your maximum acceptable loss as the stop, and your profit target. The R:R math works the same for any instrument. For options-specific tracking, see the options trading journal template.
How does expected value help with trading decisions?
Expected value combines your R:R ratio with your historical win rate to show the average dollar outcome per trade over time. A positive expected value means the setup is profitable long-term, even with individual losses. Pairing this calculator with a risk management spreadsheet gives you a complete pre-trade risk framework.
