Work it out
The starting values are an illustration, not a suggested trade or allocation.
Your inputs are not sent to a server or stored by this calculator.
Worked example
The target earns 10 before fees. Subtract 0.21 to get 9.79; dividing by the original 5-unit risk gives 1.958 R. The all-in stop-loss denominator is 5.195, not 5.
Choose exactly what 1 R means
Here, 1 R is quantity multiplied by the absolute entry-to-stop distance, before costs. Once calculated, this denominator stays fixed. The net target result is divided by that original risk so that gross and net results remain comparable.
This convention is a measurement choice, not a claim that a stop limits the actual loss. The tool reports an additional all-in planned stop loss with the entry and stop-exit fees included.
Charge the entry and the exit
A percentage fee applies to the notional filled on each leg. For a long entered at 100 and closed at 110, a 0.1% fee costs 0.10 on entry and 0.11 on exit per unit. Charging twice the entry fee would miss that difference.
The example uses one fee percentage for both fills. Different maker/taker rates, rebates, minimum charges or a fee paid in another asset require a more detailed ledger.
Separate two useful ratios
Net target R equals target profit after fees divided by original 1 R. Net reward divided by all-in stop loss uses a different denominator and will therefore usually be smaller. Both values are shown with explicit labels.
Neither ratio supplies a probability. Combining a ratio with an assumed win rate does not establish an expected return unless the outcome distribution and all costs are supported by evidence.
Use coherent prices and units
Choose long when the target is above entry and the stop below it; reverse that ordering for short. Quantity means underlying units of a linear product. A contract multiplier must be applied before entering quantity.
All prices must share the same quote currency. The calculator rejects zero stop distance and incorrect price ordering rather than returning a plausible-looking number.
Keep the scenario separate from execution
A planned trigger and an actual fill are different observations. Gaps, thin liquidity and order handling can change the executed price; funding can add another cost over time.
Keep the original assumptions with a dated worksheet. If evaluating a completed position, replace hypothetical fills with actual recorded fills and reconcile fees against the transaction history.
What this tool does not calculate
- Linear payoff only; no slippage, funding, taxes or gap model.
- Fee percentage is identical on entry and exit; actual fee schedules may differ.
Common questions
Does a 2 R target mean a good trade?
No. It describes one price scenario relative to a chosen risk denominator. It says nothing about how often that scenario occurs.
Can I enter futures contracts as quantity?
Only after converting contracts to the correct underlying units. This tool does not handle inverse or nonlinear payoff conventions.
Why can a favorable target produce negative net P/L?
Small favorable price moves can be smaller than the entry and exit fees. Negative results are displayed rather than hidden.
Sources & method
- CME Group: risk management and a trade plan
- CME Group: calculating futures profit or loss
- FINRA: order types and execution uncertainty
An original calculation tool built with AI assistance. Its method and limits are documented here, and calculation examples are checked with automated tests.
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