How to use the R-multiple calculator

Choose how you want to work it out:

  1. Prices. Enter your entry, your stop loss and your exit price. The stop tells the calculator whether the trade was long or short and how much it risked.
  2. P&L. Enter the money you made or lost and the money you risked. Use this when you know your result and the amount your stop would have cost.
  3. Trade log. Enter one trade per line, either as an R multiple (2.5, -1R) or as profit and risk (150/50). You get total R, average R, win rate, profit factor and drawdown, with charts.

The single-trade modes draw the result on an R ruler, where the stop is at minus one and the entry at zero. The trade log draws each trade as a bar and the running total as a line.

The R-multiple formula

1R = |entry − stop|   (the risk on one unit)
R-multiple = (exit − entry) ÷ (entry − stop)     for a long trade
R-multiple = profit or loss ÷ amount risked

An R-multiple of +2 means the trade made twice its risk. An R-multiple of −1 means the stop was hit. A result of 0 is break-even and −0.4 means the trade lost 40% of the risk, for instance because you exited early.

Worked example

You buy at 100 with a stop at 95 and exit at 112.5.

Step Calculation Result
Risk per unit (1R) 100 − 95 5
Move in your favour 112.5 − 100 12.5
R-multiple 12.5 ÷ 5 +2.50R

If you risked $100 on the trade, the profit is 2.5 × $100 = $250. The same answer comes out of the P&L mode: $250 ÷ $100 = 2.5R.

In the trade log the calculator opens with eight trades: +2.5R, −1R, −1R, +1.8R, −1R, +3.2R, +0.6R and −1R. They add up to +4.1R over eight trades, an average of about 0.51R per trade, with half of them winning. The deepest fall of the running total from a peak is 2R.

Why traders use R instead of money

Money results are hard to compare. A $200 win on a $10,000 account risking $50 is a better trade than a $200 win risking $500, but the dollar figure hides it. R fixes that by dividing out the risk, so trades of different sizes, markets and accounts sit on one scale.

  • It separates the idea from the size. Your R results show whether your setups work, whatever you risked.
  • It shows the pattern of your losses. If your average loss is well beyond −1R, you are not honouring your stops.
  • It allows statistics. Average R is your expectancy per trade, and total R across a period is your performance without the noise of position size.
  • It scales. If you double your risk per trade, your R results stay the same and only the money changes.

The glossary entry on the R-multiple and the article on win rate, profit factor, expectancy and R-multiple go further.

Reading a trade log in R

A trade log is the quickest way to see what you actually do. Four figures matter:

  • Average R. Above zero means a positive expectancy. With few trades it is a rough guide only.
  • Win rate. The share of trades above zero. Read it with the average win and loss, never alone.
  • Profit factor. The R you won divided by the R you lost.
  • Drawdown in R. The deepest fall of the running total. It tells you how bad a losing stretch has been, in units you can compare across accounts.

Common R-multiple mistakes

  • Moving the stop and still calling it 1R. R is measured against the risk you set before the trade. If you widen the stop mid-trade, record the original risk.
  • Leaving out costs. Commission and slippage belong in the result. A trade that closes at +0.1R before costs may be below zero after them.
  • Averaging a few trades. Twenty trades will not tell you much. See sample size.
  • Mixing risk definitions. If some trades risk the stop and others a fixed amount, state which one you mean.

What the calculator does not know

R only means something if the risk is defined honestly before you enter. The calculator takes your stop as given and cannot tell if you moved it. It also does not know about partial exits, so enter the result of the whole trade. Nothing here is investment advice.

Frequently asked questions

What is an R-multiple in trading?

It is a trade's result divided by the amount it risked. If you risk $100 and make $250, the trade is +2.5R. If you lose $100, it is −1R.

How do I calculate R-multiple?

Divide your profit or loss by your initial risk. From prices, subtract the stop from the entry to get the risk per unit, and divide the move from entry to exit by it. Entry 100, stop 95 and exit 112.5 give 12.5 ÷ 5 = +2.5R.

What is a good average R-multiple?

Anything above zero over a large number of trades means a positive expectancy. Many systematic traders aim for an average above 0.2R to 0.3R after costs, but the right figure depends on your style and on how many trades you take.

What does a −1R trade mean?

The trade lost exactly the amount you risked, which usually means the stop was hit and filled at its price. A loss larger than −1R means the stop filled worse than planned or was moved.

How is R-multiple different from risk reward?

Risk reward is the plan: how far the target is compared with the stop. R-multiple is the result: how the trade actually ended compared with the risk.

Can I use R for different instruments and accounts?

Yes. R removes the instrument, the price and the position size, so trades in forex, stocks, crypto and futures can sit in one list.

How many trades do I need to trust my average R?

More than most traders think. With fewer than about 30 trades the average is mostly noise, and 100 or more gives a more stable picture. Read the sample size entry for why.

What format does the trade log accept?

One trade per line. Write an R multiple such as 2.5, +1.2R or -1, or write profit and risk separated by a slash, such as 150/50. Lines it cannot read are listed so you can fix them.