Every trade measured in units of initial risk.
Educational tool only — not financial advice. Verify figures with your broker.
The R-Multiple Calculator is a trade-measurement tool that answers: what was this trade's result expressed as a multiple of the risk you originally took? It defines your initial stop distance as '1R' and reports the trade's outcome in those risk units, so a +2R trade made twice what you risked and a −1R trade lost exactly your planned risk.
Initial risk (1R) = the absolute distance between entry price and stop price. The R-multiple = (exit price − entry price) ÷ (entry price − stop price), which measures profit or loss in units of that initial risk. Direction is handled automatically: a winning long or short returns a positive R, a loss returns a negative R. Expressing every trade in R makes results comparable regardless of instrument or position size.
R is your initial risk on a trade — the distance from entry to stop. An R-multiple restates the outcome in those units, so this R-multiple calculator turns a dollar result into a size-independent number you can average across trades.
Any positive average R (expectancy) means the sample of trades made more than it risked per trade on average, but a good number over 20 trades can vanish over 200. R-multiples describe outcomes, not a guarantee they repeat.
Risk/reward is a plan set before the trade (your target vs your stop); the R-multiple is measured after, from where the trade actually exited. A planned 2:1 trade can still close at +0.7R or −1R.
Keep in mind: An R-multiple only measures what one trade did relative to its initial risk — a single positive R (or even a string of them) is not evidence of an edge, and it assumes your stop was actually honored at the stated price.