What is Target Price Calculator?
Calculate buy price, target price, and stop-loss price for any trade based on your desired risk-to-reward ratio Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Enter your entry price and maximum risk you are willing to take (as % or absolute amount). The calculator derives target at your desired R:R ratio. A 1:2 R:R means risking ₹1 to make ₹2.
How to Use This Calculator
- Enter your planned entry (buy) price
- Enter your stop-loss price (below which you will exit)
- Enter your desired risk-to-reward ratio (e.g., 1:2 or 1:3)
- Click Calculate to see target price, risk amount per share, and potential profit
- Use the results to evaluate if the trade setup makes sense before entering
Worked Example
Entry: ₹500 | Stop Loss: ₹480 | R:R = 1:2 → Risk: ₹20/share | Target: ₹540 | If 100 shares: Risk ₹2,000 → Potential Profit ₹4,000
Why Use This Tool?
- Mathematically define trade targets before entering
- Ensure risk-to-reward is favorable before risking capital
- Build trading discipline with pre-defined exit levels
- Calculate position size based on acceptable total risk
Frequently Asked Questions
What is a good risk-to-reward ratio for trading?
Professional traders aim for minimum 1:2 R:R (risk ₹1 to make ₹2) or better. At 1:2, you only need a 34% win rate to be profitable. At 1:3, you can be profitable with just 25% winners. Never trade with R:R below 1:1.
How to set a stop-loss?
Place stop-loss below a key support level, below the recent swing low, or using ATR (Average True Range) — typically 1.5-2× ATR below entry. Avoid round numbers and obvious levels where many orders cluster. Stop-loss should be at a logical price, not just a fixed percentage.
Why is target price important before entering a trade?
Pre-defining your target prevents emotional decision-making. Without a target, traders often exit too early (fear) or hold too long (greed). A pre-defined target based on R:R helps you stay objective and follow your trading plan.
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