Tools · free
R-Multiple Calculator
Enter your entry, stop, and exit to get the trade's R-multiple and reward-to-risk. R is the unit your whole journal should speak — it normalizes every trade so you can compare them apples-to-apples.
Estimate only, not financial advice. Assumes a single entry and a single stop.
How it's calculated
Reward per unit = X − E (long) or E − X (short)
R-multiple = Reward per unit ÷ Risk per unit
Optional: $ risk = A × r ÷ 100 · Size = $ risk ÷ Risk per unit · P&L = R × $ risk
- E — entry price
- S — stop-loss price (defines 1R)
- X — exit or target price
- A, r — optional account size ($) and risk per trade (%), used for the dollar risk, position size and P&L
Worked example
You short at 50 with a stop at 52 and cover at 45, on a $20,000 account risking 1%.
Risk per unit = |50 − 52| = 2. Reward per unit = 50 − 45 = 5. R-multiple = 5 ÷ 2 = +2.5R.
$ risk = $20,000 × 1 ÷ 100 = $200 → size = $200 ÷ 2 = 100 shares → P&L = 2.5 × $200 = +$500.
Every trade, in R — automatically
SignalDeck computes R-multiple, expectancy, and SQN across your whole journal from your imported trades — no spreadsheet. Free during beta.
Journal in SignalDeck — FreeMore tools
Frequently Asked Questions
What is an R-multiple?
An R-multiple expresses a trade's result as a multiple of the amount you risked (1R = your initial risk, the distance from entry to stop). A trade that makes twice your risk is +2R; one that hits your stop is -1R. Because every trade is measured in R, you can compare trades of different sizes and instruments on the same scale.
How do you calculate R-multiple?
Risk per unit = |entry − stop|. Reward per unit = exit − entry for a long (entry − exit for a short). R-multiple = reward ÷ risk. Example: buy at 100, stop at 98 (risk 2), exit at 106 (reward 6) → 6 ÷ 2 = +3R.
What is a good reward-to-risk ratio?
Reward-to-risk is your planned R before the trade (target distance ÷ stop distance). Many traders aim for at least 2:1, but the right number depends on win rate — a 2:1 system only needs to win ~34% of the time to break even. Expectancy (win rate combined with average R) matters more than the ratio alone.
Can an R-multiple be worse than -1R?
Yes — a trade finishes below -1R when price gaps through your stop, slippage fills you past it, or you move the stop further away. Cutting a loser before the stop gives a partial loss such as -0.5R.
What is the difference between R-multiple and reward-to-risk?
Reward-to-risk is the plan before the trade (target distance ÷ stop distance); the R-multiple is the actual result after you exit (realized reward ÷ initial risk). A trade planned at 3:1 that you close at half the target distance finishes at +1.5R.
Stop calculating trades one at a time: R-multiple trading in SignalDeck converts every journaled trade to R automatically, and the position size calculator sizes the next one from your risk.