Risk of Ruin
Calculate Risk of Ruin instantly with the exact formula and a worked example.
Risk of Ruin
Win rate, %
Loss rate, %
Trades to ruin
Risk of Ruin
1.8072%
RoR
1,8072%
More about: Risk of Ruin
What it calculates
The “Risk of Ruin” calculator computes Risk of Ruin in % from 3 parameters: win rate, %, loss rate, %, trades to ruin.
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters Win rate, % = 55, Loss rate, % = 45, Trades to ruin = 20 the result is 1.81 % ((loss/win)^trades).
How to use
- Enter win rate, %, loss rate, % and trades to ruin — each field above is adjustable with a slider.
- Risk of Ruin (%) is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.
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