Risk of Ruin Calculator

What is the Risk of Ruin Calculator?

The Risk of Ruin Calculator is a free online tool that helps you probability of blowing the account It runs entirely in your browser, gives an instant result, and needs no sign-up, download or spreadsheet.

A trading edge is win rate combined with average win versus average loss; expectancy tells you whether, over many trades, the system makes money at all.

Whether you trade stocks, forex, options, crypto or futures, the risk of ruin is the same calculation — so this tool works for any market. Use it before you place a trade to base your decision on real numbers instead of a guess.

How to use the Risk of Ruin Calculator

Using the risk of ruin calculator takes only a few seconds:

1. Enter your figures in the risk of ruin calculator above — the fields are filled with an example you can replace.
2. Read the highlighted result; it updates instantly as you type.
3. Add your broker’s fees or commissions where relevant for a true net figure.
4. Change any input to compare scenarios before you commit to the trade.

Risk of Ruin formula & example

When to use the Risk of Ruin Calculator

Reach for the risk of ruin calculator whenever you’re planning a trade and need to know your risk of ruin in advance. Running the number first keeps your decisions consistent and stops a single trade from doing outsized damage to your account. Traders who make this a habit — checking before every entry — are the ones who protect their capital over the long run.

Why use a risk of ruin calculator?

Doing risk of ruin by hand is slow and error-prone — a misplaced decimal or a forgotten fee can turn a winning plan into a losing one. The risk of ruin calculator removes that risk: it applies the correct formula every time, updates the moment you change an input, and lets you test several scenarios in seconds.

That speed matters in live markets. When a setup appears you can size it, check the reward against the risk, and act before the opportunity passes — without second-guessing your arithmetic.

• Instant, accurate risk of ruin with no spreadsheet
• Free, with no account, login or download
• Works on mobile and desktop, right in your browser
• Useful for stocks, forex, options, crypto and futures

Tips for accurate risk of ruin

• Use your real entry, exit and size — not round-number guesses.
• Include fees and spread; small costs add up across many trades.
• Recalculate whenever your price, size or stop changes.
• Round against yourself to leave a margin for slippage.

Risk of Ruin Calculator FAQs