Stop Loss Calculator

How to use this calculator

1. 1

   Enter your account size

   Your total trading account equity in dollars.

2. 2

   Set your risk percentage

   How much of your account you are willing to lose on this trade. The resulting dollar risk = account size × risk %.

3. 3

   Enter your entry price

   The price at which you plan to enter the trade.

4. 4

   Enter your intended position size

   How many shares or units you plan to purchase. The stop loss is calculated to limit your loss to your risk amount given this position size.

5. 5

   Select direction

   Long (buy) places the stop below entry; short (sell) places it above entry.

Formula

Stop Loss Price (Long)  = Entry Price − (Dollar Risk ÷ Position Size)
Stop Loss Price (Short) = Entry Price + (Dollar Risk ÷ Position Size)

Dollar Risk = Account Size × (Risk % ÷ 100)

Calculate your dollar risk first (account size × risk percentage). Then divide it by your position size to get the risk per unit. For a long trade, subtract that from your entry price; for a short trade, add it. The result is the exact stop loss price that limits your loss to your planned risk amount.

Worked Example

Frequently Asked Questions

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