Take Profit Calculator
The take profit calculator determines exactly where to place your take profit target to achieve a specific risk/reward ratio. By working backward from your entry price, stop loss, and desired R:R ratio, you get a precise price level — removing guesswork and emotional decision-making from target placement.
e.g. 2 means 1:2 risk/reward
Take Profit Price
$110.0000
Risk Distance
$5.0000
Reward Distance
$10.0000
R:R Ratio
1 : 2
How to use this calculator
- 1
Enter your entry price
The price at which you plan to enter the trade.
- 2
Enter your stop loss price
Your exit price if the trade moves against you. This determines your risk distance.
- 3
Set your desired R:R ratio
Enter 2 for a 1:2 ratio, 3 for 1:3, etc. This multiplies your risk distance to calculate the reward distance.
- 4
Choose direction
Long (buy) — take profit is above entry. Short (sell) — take profit is below entry.
Formula
Take Profit (Long) = Entry + (Risk × R:R Ratio)
Take Profit (Short) = Entry − (Risk × R:R Ratio)
Risk = |Entry − Stop Loss|Calculate the risk distance (absolute difference between entry and stop loss). Multiply it by your desired R:R ratio to get the reward distance. Add the reward to your entry for a long trade, or subtract it for a short trade. The result is your take profit price.
Worked Example
Direction: Long Entry price: $100.00 Stop loss: $95.00 Desired R:R ratio: 2 Risk = |$100 − $95| = $5.00 Reward = $5 × 2 = $10.00 Take Profit = $100 + $10 = $110.00 Place your take profit at $110.00. If the trade reaches $110, you make $10 per share — exactly double your $5 risk per share, achieving your 1:2 R:R target.
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