Overview
Normalize trade results with R
R-multiple standardizes your trade outcome by dividing profit or loss by the initial risk (1R). This makes it easier to compare performance across instruments, position sizes, and account balances.
Many traders track R-multiples alongside expectancy and drawdown metrics in a journal to evaluate strategy quality over time.
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Trade journal ready
Copy a structured journal line for review and tracking.
Long or short
Works with stocks, crypto, forex, and CFDs.
Target ladder
Plan 1R, 2R, 3R, 5R targets from your entry and stop.
Calculator
R-multiple calculator
Auto-updates as you type. Switch between realized R and target prices.
Outputs
Price risk (per unit)
0
1R (risk)
$0
PnL
$0
Net PnL
$0
R-multiple
0R
Price risk (1R)
0
Target price (desired R)
$0
1R / 2R / 3R / 5R ladder
1R: - | 2R: - | 3R: - | 5R: -
How it works
How the R-Multiple Calculator works
R-multiple measures performance in units of risk: your profit or loss divided by what you were willing to lose (1R), typically defined by the stop-loss distance.
Formulas
Risk per unit = |Entry - Stop|
1R ($ risk) = Risk per unit x Units x Multiplier
PnL (long) = (Exit - Entry) x Units x Multiplier
PnL (short) = (Entry - Exit) x Units x Multiplier
R-multiple = (PnL - Fees) / 1R
Example
Entry $100, stop $95 (price risk $5). Exit $110 = $10 per share profit.
R-multiple = $10 / $5 = +2R.
R-multiple vs risk:reward
Risk:reward is the plan before the trade (based on target vs stop).
R-multiple is the result after the trade (based on the realized exit).
If you want consistent R across trades, size positions by risk with the Position Size Calculator .
Related tools
More risk and performance tools
FAQ
R-multiple FAQs
What is an R-multiple in trading?
An R-multiple is your profit or loss divided by your initial risk (1R), usually defined by the entry-to-stop distance.
How do I calculate R-multiple?
Compute your profit or loss in dollars (or points times size) and divide it by your initial risk (1R) in dollars.
Why use R instead of PnL?
R normalizes outcomes, making it easier to compare trades across instruments and position sizes, and it is commonly used for journaling and performance review.
Is R-multiple the same as risk:reward?
No. Risk:reward is the planned ratio before the trade; R-multiple is the realized result based on the actual exit.
Can I use R-multiples for forex and crypto?
Yes. R is defined by entry, stop, and position size, so it applies to any market where you can define risk.
Disclaimer
Educational tool only. Results are mathematical estimates based on your inputs (prices, size, fees).