Trade Profitability Calculator – P&L, ROI & Risk-Reward Ratio

Calculate potential profit, loss, ROI, and risk-reward ratio for any trade.

Enter entry price, exit price, position size, and stop-loss, then click Calculate.

Trade profitability analysis evaluates the potential financial outcome of a trade before execution. The core calculation is Gross P&L = (Exit Price — Entry Price) × Position Size. For long positions, profit occurs when the exit price exceeds the entry price; for short positions, the opposite is true. ROI (Return on Investment) measures profit as a percentage of the invested capital. The risk-reward ratio compares the potential loss (risk) to the potential gain (reward), calculated as: Risk-Reward Ratio = (Target — Entry) / (Entry — Stop-Loss). A ratio of 1:2 or higher is generally considered favorable. This calculator also accounts for trading fees (0.1% per side) to estimate net profitability. Understanding these metrics is essential for effective trade planning, position sizing, and risk management in trading and investing.

  1. Enter the Entry Price — the price at which you open the position.
  2. Enter the Exit Price — your target price to close the trade.
  3. Enter the Position Size — number of units (shares, lots, contracts).
  4. Enter the Stop-Loss Price — the level where you’ll exit if the trade goes against you.
  5. Click Calculate Profitability to see P&L, ROI, and risk-reward ratio.
  6. The result includes gross and net profit (with fees), ROI, and trade assessment.
  7. Click Reset to restore default example values.

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