R-Multiple Calculator
Calculate the R-multiple of your trade to evaluate performance.
R-multiple measures profit or loss as a multiple of your initial risk.
Your data stays in your browser. We do not store, collect, or transmit any information you enter.
R-Multiple
R-Multiple (developed by Dr. Van K. Tharp) measures trade performance as a multiple of your initial risk (R).
Initial Risk (1R) = |Entry Price − Stop Loss Price|
R-Multiple = (Exit Price − Entry Price) / Initial Risk
For long trades: R-Multiple = (Exit Price − Entry Price) / (Entry Price − Stop Loss Price)
For short trades: R-Multiple = (Entry Price − Exit Price) / (Stop Loss Price − Entry Price)
Interpreting R-Multiples:
- +1R — You made exactly what you risked (1:1)
- +2R — You made double your risk
- +3R — You made triple your risk (excellent trade)
- -1R — You lost your planned risk amount (normal)
- -0.5R — You cut losses early (good discipline)
- -2R — You lost double your risk (stop was missed)
Why R-Multiples matter:
- They normalize trade results regardless of position size
- A system with average R-multiple above +0.5R is generally profitable
- Tracking R-multiples helps you evaluate your trading edge objectively