Calculating your stop-loss price is straightforward once you know the Stop Loss formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Stop Loss Calculator.
What is Stop Loss?
The Stop Loss calculation tells you your stop-loss price from a few simple inputs. The figure you are solving for here is the stop-loss price, expressed in INR.
The Stop Loss formula
The core formula is:
Stop-loss price = Entry price × (1 - Stop-loss ÷ 100)Here is what each input means:
- Entry price — a money amount. Example: ₹100.
- Stop-loss — a percentage, such as an annual rate. Example: 5%.
How to calculate it step by step
- Write down the entry price (for example, ₹100).
- Write down the stop-loss (for example, 5%).
- Apply the formula above to get your stop-loss price.
- Double-check the result with the Stop Loss Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Entry price | ₹100 |
| Stop-loss | 5% |
| Stop-loss price | ₹95.00 |
| Loss per share | ₹5.00 |
With entry price of ₹100 and stop-loss of 5%, the stop-loss price works out to ₹95.00.
Example 2
With entry price of ₹200 and stop-loss of 5%, the stop-loss price works out to ₹190.00.
| Result | Value |
|---|---|
| Stop-loss price | ₹190.00 |
| Loss per share | ₹10.00 |
Example 3
With entry price of ₹50 and stop-loss of 5%, the stop-loss price works out to ₹47.50.
| Result | Value |
|---|---|
| Stop-loss price | ₹47.50 |
| Loss per share | ₹2.50 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Stop Loss Calculator does it instantly, for free, with the formula and a worked example built in.
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