R-Multiple Calculator
Express a trade's result as a multiple of the amount it risked, so trades of any size compare directly.
An R multiple expresses a trade's result as a multiple of what it risked, and this R-multiple calculator converts a single trade into that figure. One R is the distance from entry to the original stop. A trade that made three times that distance is +3R; a full stop-out is exactly −1R.
Formula: R multiple = price move / |entry - stop|
Your figures
The stop set when the trade was opened, not one moved later.
Optional — converts the result into currency.
Results
R multiple
+3.00 R
result as a multiple of the initial risk
- Initial risk (1R)Price distance from entry to the original stop.
- 2.0000
- Price move achieved
- +6.0000
- Move as a percentage
- +6.00%
What this means
This trade returned +3.00 times what it risked. A full stop-out would have been exactly −1.00 R, and exiting at entry would have been 0.00 R. Because R normalises against the amount risked, this figure is directly comparable with trades of any size on any instrument.
- Uses the original stop, not a stop that was later moved. Recording R against a trailed stop makes results incomparable.
- Excludes commission and slippage, both of which reduce the realised R.
R multiple: +3.00 R
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Continue with these figures
About the R-Multiple calculation
The point of the convention, which traders often call the Van Tharp R multiple after the writer whose work on position sizing put it into common use, is comparability. A $40 gain and a $4,000 gain say nothing on their own, because they depend on position size. Expressed in R, a trade on a small forex position and a trade on a large share position sit on the same scale.
That is what makes a trading record analysable, and why R multiple trading journals log every result in R rather than in cash. A list of R multiples averages into an expectancy that is independent of account size, so a strategy's performance can be assessed without the noise of how much was committed on each occasion.
R-Multiple formula
R = |entry − stop|
move = long ? (exit − entry) : (entry − exit)
R multiple = move ÷ R
with a position size:
total risk = R × units
total result = move × units- R
- One unit of risk — the initial stop distance, always positive.
- move
- Price change achieved, signed in the direction of the trade.
- original stop
- The stop set when the trade was opened, not one moved later.
Dividing the result by the initial risk cancels the units, which is what leaves the trade result in R rather than in currency. Whether the instrument is priced in pence, dollars or index points, and whether the position was one unit or ten thousand, the R multiple is the same number.
The original stop is the denominator, and this matters. If a stop is trailed to breakeven and the trade then stops out, the result is 0R against the original risk — not −1R, and not 0R against a zero-width stop. Measuring against a moved stop makes results incomparable and, worse, makes a strategy look better than it was.
Two anchors make the scale easy to read: a clean stop-out is always −1R, and an exit at the entry price is always 0R. Everything else is measured against those.
R-Multiple: a worked example
A long trade entered at 100 with a stop at 98, exited at 106, holding 500 units.
- Initial risk, R|100 − 98| = 2.00
- Price move106 − 100 = 6.00
- R multiple6.00 ÷ 2.00 = +3.00 R
- Total amount risked2.00 × 500 = 1,000
- Total result6.00 × 500 = 3,000
The trade returned three times what it risked. Had the same +3R come from a position of 50 units rather than 500, the R multiple would be identical — only the cash figures would change.
How to use the R-Multiple calculator
- Enter the entry price and the stop-loss you set when the trade was opened. A risk multiple calculator measures against the initial risk, so that is the stop it needs.
- Enter the exit price. Use the actual fill, not the level you intended.
- Choose long or short so the calculator signs the move correctly.
- Optionally add the position size to see the result in currency alongside the R multiple.
- Record the R multiple for each trade. Averaging them gives an expectancy in R.
Limitations of the R-Multiple calculator
Every calculation makes assumptions. These are the ones that matter here.
- Uses the original stop. If you routinely move stops, the R multiple describes the trade against its initial plan rather than against the risk actually carried at exit.
- Excludes commission, spread and slippage, all of which reduce the realised R — often materially on small-R trades.
- Assumes a single entry and a single exit. Positions scaled in or out need each portion measured separately and combined.
- Says nothing about the quality of the decision. A +5R result from a trade that should not have been taken is still luck.
Frequently asked questions about R-Multiple
What does 1R actually mean?
It is the amount you decided to risk on the trade, expressed as the price distance from entry to your initial stop. Every other outcome is measured as a multiple of it, which is why a full stop-out is −1R by definition.
Should I use the original stop or the stop at the time of exit?
The original one. Measuring against a trailed stop shrinks the denominator as the trade progresses, which inflates the R multiple and makes results incomparable between trades.
How do R multiples relate to expectancy?
Expectancy is the average of your R multiples. A system averaging +0.4R returns, over a large sample, 40% of the amount risked per trade. Because R is size-independent, that figure holds whether you risk $10 or $10,000.
Can an R multiple be worse than −1R?
Yes. Gaps, slippage and fast markets can fill a stop beyond its price, producing −1.4R or worse. That is precisely why the figure is worth recording rather than assuming every loss is exactly −1R.
Last reviewed . See our methodology and editorial policy.
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