Take Profit Calculator
Work out the take-profit price that delivers a target R multiple, cash profit or percentage gain, net of costs.
The reward-to-risk calculator answers one question: given a target, what ratio does it produce? This take profit calculator answers the inverse and more practical question — given the ratio you want, where to set take profit? It is a target price calculator rather than a ratio one, and it works backwards from the outcome you have already decided on.
Formula: take profit = entry +/- (risk x target R + costs / units)
Your figures
How you want to state the target you are aiming for.
Sets the risk that an R multiple is measured against.
Used when the target is an R multiple.
Used when the target is a cash amount.
Used when the target is a percentage of the entry price.
In units of the instrument. Needed for cash targets and costs.
Pushes the target further out so the R is achieved net of costs.
Results
Take-profit price
US$106.00
6.0000 above entry
- Move required6.000% from entry.
- 6.00000000
- Risk per unit
- 2.00000000
- Risk to the stop
- US$1,000.00
- Profit at the targetNet of the costs entered.
- US$3,000.00
- R multiple achieved
- 3.000R
- Break-even win rate at this target
- 25.00%
What this means
To achieve the target you asked for, place the take-profit at US$106.00 — 6.000% from the entry. At this ratio, 25.00% of such trades must win simply to break even.
- Solving for a target does not make it reachable. A target beyond what the instrument typically moves in the time available will not be hit however well the ratio reads.
- Costs are added to the required distance rather than deducted after, so the R multiple shown is genuinely achieved net of them.
- Assumes the stop stays where it is. Moving it changes the risk and therefore the R multiple of the same target price.
Take-profit price: US$106.00
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About the Take Profit calculation
Traders usually think in outcomes rather than prices. A 3R target, a $2,500 profit, an 8% gain — those are the terms decisions are actually made in. Converting an R multiple into a target price, or a cash figure into one, is arithmetic, and arithmetic done in the head at the moment of entry is arithmetic done badly.
The detail that matters most is costs. A 3R target that ignores commission and spread is not a 3R target; by the time the trade closes it is meaningfully less. This calculator adds the cost distance to the target rather than deducting it afterwards, so the ratio you asked for is the ratio you get.
Take Profit formula
risk per unit = |entry − stop|
R multiple : move = risk per unit × target R + costs ÷ units
cash target : move = (target cash + costs) ÷ units
percentage : move = entry × target % ÷ 100 + costs ÷ units
take profit = entry + move (long)
= entry − move (short)- R
- One unit of risk — the distance from entry to stop.
- costs ÷ units
- Cash costs converted into a price distance.
- TP
- The take-profit order itself, as most trading platforms label the field this calculator fills in.
An R multiple is defined against the stop, so the stop is what sets the scale. Move the stop and the same target price becomes a different R — which is why changing a stop mid-trade quietly changes the ratio the trade was taken on.
Costs enter as an addition to the required move, and this is the part most often got backwards. Subtracting costs from the profit afterwards tells you the target underdelivered; adding them to the distance beforehand produces a target that actually delivers. The calculator reports both the gross and the achieved R so the size of the adjustment is visible.
The percentage mode sets the target from the entry price alone rather than from the distance to the stop. The stop is still required — it is what an R multiple is measured against, and the calculator reports one whichever mode you choose — so a percentage target still comes back with the R it happens to work out at. The mode is there for traders who think in percentage moves rather than in risk units, not as a way of working without a stop.
Take Profit: a worked example
A long of 500 units entered at 100.00 with a stop at 98.00, targeting 3R, with $250 of round-trip costs.
- Risk per unit|100 − 98| = 2.00
- Move for 3R2.00 × 3 = 6.00
- Cost distance250 ÷ 500 = 0.50
- Total move required6.50
- Take-profit price100.00 + 6.50 = 106.50
- Achieved after costs3.00R
- Break-even win rate(1,000 + 250) ÷ (1,000 + 3,250) = 29.41%
106.50 rather than 106.00. That extra 0.50 is what makes it a genuine 3R trade instead of a 2.75R one. The break-even win rate is 29.41% and not the 25.00% a clean 3:1 implies, because the $250 has to be paid on the losing trades as well as the winning ones — it is added to the risk and taken off the reward at the same time.
How to use the Take Profit calculator
- Enter the entry and stop first — together they define one unit of risk, and therefore any R multiple target price you ask for.
- Choose how you want to state the target: an R multiple, a cash profit, or a percentage gain. As a profit target calculator it accepts all three and converts each into the same price.
- Add the position size if you are working in cash or want costs included.
- Enter round-trip costs. The target moves further out to absorb them.
- Check the break-even win rate. A high target ratio needs fewer winners, but it also gets hit less often — the calculator gives the first half of that trade-off, not the second.
Limitations of the Take Profit calculator
Every calculation makes assumptions. These are the ones that matter here.
- Solving for a target does not make it reachable. A price beyond what the instrument typically moves in the time available will not be hit however good the ratio looks.
- Assumes the stop stays put. Moving it changes the risk and therefore the R multiple of the same target price.
- Assumes the target fills at its price. Limit orders at a target may not fill if price touches and reverses.
- Says nothing about the probability of reaching the target, which is what actually determines whether the ratio is worth taking.
Frequently asked questions about Take Profit
Why does the take profit move further away once I add costs?
Because costs have to be earned before the profit starts. A 3R target with costs included has to travel far enough to pay them and then deliver 3R. Without that adjustment the trade delivers less than the ratio it was taken on.
What is an R multiple?
A multiple of the distance from entry to stop. If your stop is 2.00 away, then 2.00 is 1R and a 3R target sits 6.00 from entry. It makes trades of different sizes and instruments directly comparable.
Is a higher target always better?
No, and this calculator deliberately does not suggest one. A higher ratio needs a lower win rate to break even, but it is also reached less often. The break-even win rate tells you what a target demands; only your own record tells you whether you clear it.
How does this differ from the risk/reward calculator?
They are inverses. Risk/reward takes a target price and returns the ratio. This takes the ratio you want and returns the price. Use whichever direction matches how you are thinking.
Last reviewed . See our methodology and editorial policy.
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