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Risk & sizing · free, no login

Profit Target Calculator

The target your R:R actually implies.

Risk per unit (1R)5
Target price110
Target distance from entry10.00%

Works for longs and shorts: with a stop above entry (short), the target lands below entry automatically.

Educational tool only — not financial advice. Verify figures with your broker.

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What is the Profit Target Calculator?

The Profit Target Calculator turns a chosen reward-to-risk ratio into an actual target price. It answers: given my entry, my stop, and the reward:risk I want, what price must I exit at to achieve that ratio? It returns the risk per unit (1R), the target price, and how far that target sits from entry.

How to use it

  1. Enter the Entry price where you open the trade.
  2. Enter the Stop price — placing it below entry defines a long, above entry defines a short.
  3. Enter the Desired reward : risk (e.g. 2 means you want to make twice what you are risking).
  4. Read the highlighted Target price: that is the exit price implied by your ratio. Risk per unit (1R) shows the entry-to-stop distance, and Target distance from entry shows how far price must travel to reach the target.

How it's calculated

Risk per unit (1R) is the absolute distance between entry and stop. The target is placed that distance times the reward:risk ratio away from entry, on the profit side of the trade. For a long (stop below entry) the target lands above entry; for a short (stop above entry) it lands below — the direction is inferred automatically from where the stop sits.

Frequently asked

How do I calculate a profit target from risk-reward?

Measure your risk as the distance from entry to stop, then multiply it by your desired reward:risk ratio and add it on the profit side of entry. This profit target calculator does that automatically and returns the exact price for both longs and shorts.

Does the calculator work for short trades?

Yes. If you set the stop above entry, the tool reads the trade as a short and places the target below entry automatically — you do not need to flip any signs.

Is a higher reward:risk target always better?

A higher ratio means a larger reward per unit of risk, but it also places the target further away, so price has to travel further to hit it. The tool shows the distance so you can judge whether that target is realistic for the instrument.

Keep in mind: This calculator only computes where a target price sits for a given reward:risk — it does not estimate how likely price is to reach that target, or how often it will hit the stop first. A favorable ratio on paper says nothing about whether the trade will be profitable.

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