R-Multiple Calculator
Express a trade’s result in units of the risk you took — the R-multiple that lets you compare every trade on one common scale.
How it works
Risk per share = |entry − stop| · 1R = risk per share × shares · R-multiple = trade P/L ÷ 1R
An R-multiple measures profit or loss in units of the risk you originally took, where 1R is the dollar amount between your entry and your initial stop. Reporting every trade in R makes results comparable regardless of position size or share price: a +3R on a small position is a better trade than a +1R on a large one. Over a series, the average R and the distribution of R-multiples describe your edge far more honestly than a raw dollar total.
Worked example
You buy 100 shares at $100 with a stop at $95, so risk is $5 per share and 1R is $500. You exit at $115 for a $1,500 gain. Dividing $1,500 by the $500 of risk gives a +3R trade — three times the amount you were willing to lose.
Frequently asked questions
What does 1R mean?
1R is the money you stood to lose if your initial stop had been hit — the distance from entry to stop times your share count. Every other outcome is measured as a multiple of that unit, so a loss at your stop is −1R and a gain of twice your risk is +2R.
Why use R-multiples instead of dollars?
Dollars mix together how good the trade was with how big the position was. R-multiples strip out size, so you can compare a $5 stock and a $500 stock on the same scale and judge the quality of your decisions rather than the size of your account.
What is a good average R?
Any positive expectancy — a positive average R across many trades — means the system makes money over time. Combined with a realistic win rate, even an average of +0.3R can be highly profitable when repeated with discipline.
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Educational estimate, not investment advice. Trading involves risk of loss.