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# risk to reward calculation

hello! i am trying to create an excel sheet or formula that allow me to enter data and have it quickly calculate it... basically, i want to find:

"DOLLAR risk / (ENTER amount - RISK amount) = SHARES "

\$5 / (\$0.25 ENTER - \$0.23 RISK) = \$5 / \$0.02 = 250 SHARES

so if I want to risk \$5, ENTER at \$0.25 and RISK \$0.23, I would get 250 SHARES x \$0.25 ENTER = \$62.50

so I then want to be able to compute an EXIT price based off a percentage gain... like a 20% gain of \$0.25 ENTER would mean I would EXIT at \$0.30 ...  is that possible?

so it would cost me \$62.50 with 250 shares at \$0.25 and i would make \$75 with 250 shares at \$0.30, which is a profit of \$12.50 (20% gain)

Any info would help if there is a way to compute this!

Thank you!!!

4 Replies

# Re: risk to reward calculation

@volcomkiss7 Perhaps the attached file is helpful.

# Re: risk to reward calculation

@Riny_van_Eekelen THIS IS AWESOME! Would you be able to create one that I can easily plug in numbers with this formula:

Shares = Dollar Risk / (Enter \$ - Risk \$)

Thanks so much!

# Re: risk to reward calculation

@volcomkiss7 Isn't that what I did in column D?

# Re: risk to reward calculation

got it! thank you for this!