How it works
A take-profit target is an arithmetic exit level defined by a selected objective. It does not describe the probability of reaching that price or whether an order will fill.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
Direction: Long; Entry price: $50.00; Target profit: 8.0%; Calculated take-profit price: $54.00; Quantity: 100; Gross profit at target: $400.00; Optional stop: $48.00; Reward/Risk: 2.00R.
Calculation method
Percentage mode applies the requested price move to entry. Gross-dollar mode spreads the desired profit over quantity and multiplier; net-dollar mode also solves for entry fees, exit fees and fixed costs.
Interpretation
An R target multiplies the distance from entry to the stop. A conventional long stop must be below entry, while a short stop must be above entry. A target two stop-distances away represents 2R before costs.
Limitations
Fee-adjusted targets assume fixed fee rates and unchanged quantity. Gaps, partial fills, slippage and changing fee schedules can alter actual execution. A zero short target is a mathematical boundary, not a practical price forecast.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- CME Group — Calculating futures profit or lossContract size and price-movement context; verify your broker or exchange specification separately.
- Investor.gov — Understanding FeesInvestment fee and compounding context; enter the terms of your fund or account.
Frequently asked questions
How does an R-based target differ from a percentage target?
An R-based target uses the entry-to-stop risk distance as its unit. A percentage target uses entry price as its base. The two methods need different inputs.
What is a worked example for Take Profit?
Direction: Long; Entry price: $50.00; Target profit: 8.0%; Calculated take-profit price: $54.00; Quantity: 100; Gross profit at target: $400.00; Optional stop: $48.00; Reward/Risk: 2.00R.