Stop Loss Calculator
Calculate your optimal stop loss, position size, and risk/reward ratio with our free Stop Loss Calculator. Supports fixed price, percentage-based, and trailing stop methods. Perfect for traders of stocks, crypto, forex, and futures.
What Is a Stop Loss?
A stop loss is an order placed with a broker to buy or sell a security when it reaches a certain price. It is designed to limit an investor's loss on a position. Stop losses are a cornerstone of risk management in trading, helping traders protect their capital from significant losses.
This calculator supports three common stop loss methods:
- Fixed Price: A specific price at which you'll exit the trade.
- Percentage: A percentage decline from the entry price (e.g., 5% stop).
- Trailing Stop: A stop that moves with the price to lock in profits as the trade moves in your favor.
How Does the Stop Loss Calculator Work?
The calculator uses the following key formulas:
Position Size:
Position Size = (Account Balance × Risk %) / (Entry Price − Stop Loss Price)
Dollar Risk:
Dollar Risk = Position Size × (Entry Price − Stop Loss Price)
Risk/Reward Ratio:
R/R Ratio = (Take Profit − Entry) / (Entry − Stop Loss)
Breakeven Win Rate:
Breakeven % = 1 / (1 + R/R Ratio) × 100
Enter your trade details, and the calculator will instantly show your optimal position size, dollar risk, and risk/reward ratio.
Why Use This Stop Loss Calculator?
- Three Stop Types: Fixed, percentage, and trailing stops.
- Position Sizing: Calculates the exact number of shares or units to trade.
- Risk/Reward Analysis: See your potential profit relative to your risk.
- Visual Profile: A chart shows your trade's risk/reward profile.
- Free & Private: No registration, no data storage.
Understanding Risk Management
- The 1-2% Rule: Many professional traders risk no more than 1-2% of their account on any single trade.
- Risk/Reward Ratio: A ratio of 1:2 or higher means you're risking $1 to make $2 or more.
- Trailing Stops: Lock in profits as the price moves in your favor while still protecting against reversals.
❓ Stop Loss Calculator FAQ
What is a stop loss?
A stop loss is an order to sell a security when it reaches a certain price, designed to limit an investor's loss on a position.
How is a stop loss calculated?
A stop loss can be set as a fixed price, a percentage below the entry price, or a trailing stop that moves with the price.
What is position sizing?
Position sizing determines how many shares or units to buy based on your account size, risk tolerance, and stop loss distance.
What is a trailing stop?
A trailing stop is a stop loss that moves with the price as it moves in your favor. For example, a 10% trailing stop on a stock that rises from $100 to $120 would move the stop from $90 to $108.
What is a good risk/reward ratio?
Many traders aim for a risk/reward ratio of at least 1:2, meaning you risk $1 to make $2. A higher ratio means more potential profit relative to risk.
How much should I risk per trade?
Many professional traders risk no more than 1-2% of their account on any single trade to protect against a series of losses.
What is the difference between a stop loss and a take profit?
A stop loss is used to limit losses, while a take profit is used to lock in profits at a target price.
How does the calculator handle short positions?
For short positions, the stop loss is placed above the entry price, and the take profit is placed below. The calculator adjusts automatically.
What is a breakeven win rate?
The breakeven win rate is the percentage of trades you need to win to break even, given your risk/reward ratio. For a 1:2 ratio, you need to win 33% of trades to break even.
Is this calculator free to use?
Yes, this calculator is completely free to use. No registration or personal data storage is required.