Fibonacci Risk/Reward Calculator

Knowing where a Fibonacci level sits is only half the picture, the other half is whether a trade built around it is actually worth taking. This calculator combines an entry price from the Fibonacci Retracement Calculator, a profit target from the Fibonacci Extension Calculator, and a stop-loss you choose, into a risk/reward ratio and a position size sized to how much of your account you're willing to risk.

It bridges the gap between "here's a level" and "here's an actual trade plan," the same way this site's Position Size Calculator works for a plain entry and stop without the Fibonacci levels attached.

How does this calculator work?

Enter the swing low, swing high, and trend direction to generate the same retracement and extension levels as the other Fibonacci calculators.

Choose which retracement level to use as your entry (commonly 61.8% or 50%) and which extension level to use as your profit target (commonly 161.8%).

Enter a stop-loss price, often placed just beyond the swing low (in an uptrend) or swing high (in a downtrend), since a break past the original swing usually invalidates the setup.

The calculator computes risk per share (entry minus stop) and reward per share (target minus entry), divides them for the risk/reward ratio, then sizes a position: account size × risk % gives your dollar risk budget, divided by risk per share gives the number of shares that keeps a stop-out within that budget.

Worked example

The familiar $50-to-$100 uptrend swing: entering at the 61.8% retracement ($69.10), targeting the 161.8% extension ($130.90), with a stop at the swing low ($50), a $10,000 account, and 1% risk per trade.

Risk per share

$19.10

Reward per share

$61.80

Risk/reward ratio

3.24:1

Position size

5 shares

How the numbers work

Risk per share is $69.10 − $50 = $19.10; reward per share is $130.90 − $69.10 = $61.80, for a 3.24:1 ratio, meaning the target is worth about 3.24 times what's being risked.

1% of a $10,000 account is $100 in dollar risk. Dividing that by the $19.10 risk per share gives 5.24 shares, rounded down to 5 whole shares, for a position worth $345.50 at entry.

A favorable risk/reward ratio doesn't guarantee a winning trade, price still has to actually reach the target, but it does mean fewer wins are needed to be profitable overall. A 3:1 ratio only needs to win about 25% of the time to break even before costs, versus 50% for a 1:1 ratio.