Profit/Loss & Risk-Reward Calculator

The profit/loss calculator computes gross and net profit or loss after two-sided fees, return percentage on entry value, and optional planned reward-to-risk and R expectancy for long or short trades.

Inputs: Trade direction (long/short), Amount — entry price (your currency), Amount — exit price (your currency), Quantity (shares), Amount — fee per side (optional), plus optional Amount — stop-loss, Amount — target, and Win rate (%).

Default preview (Long 100 sh, $50.00 → $55.00, $1.00/side fee): Gross P/L = $500.00, Total fees = $2.00, Net P/L = $498.00, Return = 9.96% (relative to the entry value; margin is not modelled).

Planned setup ($48.00 stop, $56.00 target, 40% win rate): Reward-to-risk = 3.00 : 1, Expectancy = 0.60 R (average result per trade, in units of the amount risked, if the win rate and reward-to-risk hold exactly (they rarely do)).

Educational tool. Results are simple calculations based only on the numbers you enter. They are not predictions and not financial advice.

How it works

For a long trade, gross profit or loss equals exit price minus entry price multiplied by quantity. For a short trade, gross profit or loss equals entry price minus exit price multiplied by quantity. Subtracting twice the per-side fee gives net profit or loss, and dividing net profit or loss by the entry position value gives return percentage (relative to entry value, without modelling margin). If you enter a valid planned stop-loss and target price on opposite sides of entry, reward-to-risk equals the target distance divided by the stop distance, and adding an optional win rate computes expectancy in units of planned risk (R).

Gross P/L (long) = (X - E) * N; Gross P/L (short) = (E - X) * N

Total fees = 2 * F; Net P/L = Gross P/L - Total fees

Return (%) = (Net P/L / (E * N)) * 100

Planned risk = |E - S| * N; Reward-to-risk = |T - E| / |E - S|

Actual R-multiple = Net P/L / Planned risk

Expectancy (R) = (w / 100) * Reward-to-risk - (1 - w / 100) * 1

Worked example

For a long trade entering 100 shares at $50.00 (entry value $5,000.00) and exiting at $55.00 with $1.00 per-side fee: gross profit is $500.00, total two-way fees are $2.00, net profit is $498.00, and return on entry value is 9.96%. With a planned stop at $48.00 and target at $56.00, planned risk is $200.00, reward-to-risk is 3.00:1, actual R-multiple is 2.49R, and at a 40% win rate, theoretical expectancy is 0.60R (average result per trade, in units of the amount risked, if the win rate and reward-to-risk hold exactly (they rarely do)).

How to use the result

Compare gross profit or loss against net profit or loss to observe how two-way per-side fees affect your return percentage. When evaluating a planned setup with stop and target prices, check the reward-to-risk ratio and actual R-multiple to measure outcome in multiples of planned risk rather than position size alone.

Frequently asked questions

Why are fees multiplied by 2?

A complete round-trip trade has two sides: entering the position and exiting the position. Multiplying the fee per side F by 2 accounts for both sides.

How is return percentage calculated for short trades?

Return percentage divides net profit or loss by the initial entry value (E * N) and multiplies by 100. It measures return relative to the entry value; margin is not modelled.

Why do I need both a stop and a target to calculate expectancy?

Expectancy in R uses the reward-to-risk ratio |T - E| / |E - S|, which requires both the stop-loss price S and the target price T in addition to the win rate w.

What does expectancy in R represent?

Expectancy (in R) is the average result per trade, in units of the amount risked, if the win rate and reward-to-risk hold exactly (they rarely do).

Can I enter fractional share quantities?

Yes. Quantity N accepts any positive number greater than 0, including decimal share amounts.

Want to practice these ideas without risking money? EquiTrek is an iOS app with a paper-trading simulator.