Take Profit Calculator
Most traders exit trades based on emotion — too early on winners, too late on losers. This calculator determines optimal take profit levels based on your risk/reward ratio, stop loss distance, and technical levels — ensuring you lock in profits at the right price, not when fear or greed tells you to.
Works for all markets and timeframes. Calculates single or multiple TP levels, adjusts for support/resistance, and shows return on margin. Essential for systematic profit-taking.
Your entry price
Distance from entry to stop loss
Target R:R ratio (e.g., 2 = 2:1, profit is 2x risk)
Total position size in dollars
Long = TP above entry, Short = TP below entry
Position leverage (for return on margin calculation)
Key resistance level (TP will adjust if closer than calculated)
Take Profit Target
Take Profit Price
$52000.00
Want these limits enforced automatically?
Jungle Rebounder helps execute structured strategies with hard caps.
See Jungle RebounderHow It Works
Calculation Methodology
Take profit levels determine when you exit winning trades. This tool calculates optimal TP based on risk/reward ratios and technical levels:
Key Insight: Risk/reward ratio determines profitability more than win rate. At 2:1 R:R, you only need 34% win rate to break even. At 3:1, you only need 25%. Never take trades with less than 1:1 R:R — you're gambling, not trading. Always adjust TP for technical levels (support/resistance) — price often reverses there.
Learn more about take profit strategies:
Position sizing guideExample Scenario
Setup: $50,000 entry, 2% stop, 2:1 R:R, $5,000 position, Long, 10x leverage
What this means: You risk $100 (2% stop) to make $200 (4% profit). At 2:1 R:R, you only need to win 34% of trades to be profitable. If you win 50% of trades, you make $50 per trade on average ($200 × 0.5 - $100 × 0.5).
Note: Always account for fees (0.05-0.1% per side). Your actual profit will be slightly less.
Common Mistakes & Warnings
- ⚠Taking trades with poor R:R: Less than 1:1 R:R means you need >50% win rate to profit. That's gambling, not trading. Always aim for at least 1.5:1, preferably 2:1 or higher.
- ⚠Ignoring support/resistance: Placing TP beyond strong technical levels often results in reversals. Price rarely breaks through major resistance/support on first attempt. Adjust TP to technical levels.
- ⚠Moving TP further away: Never widen your TP after entering. If you calculated 2:1 R:R, stick to it. Moving TP further = greed. Moving TP closer = fear. Both are mistakes.
- ⚠Not scaling out: Taking 100% at one TP level is risky. If price reverses, you lose everything. Scale out: 50% at 1.5x, 30% at 2x, let 20% run. This locks profits while giving winners room.
- ⚠Not trailing stops: Once price reaches 1.5x R:R, move stop to breakeven. At 2x R:R, move stop to 1x R:R. This protects profits while letting winners run. Never let a winner turn into a loser.
Example Scenarios
Try these realistic scenarios to understand take profit levels in different market conditions.
Scenario 1: Conservative 2:1 Risk/Reward
Standard professional approach. Requires 34% win rate to break even. Most common R:R ratio.
Step-by-Step Calculation:
- Risk Amount: $5,000 × 2% = $100
- TP Distance: 2% × 2 = 4%
- Take Profit: $50,000 × (1 + 4%) = $52,000
- Profit Amount: $5,000 × 4% = $200
- Margin Required: $5,000 ÷ 10 = $500
- Return on Margin: ($200 ÷ $500) × 100 = 40%
What this means: You risk $100 to make $200. At 2:1 R:R, you only need 34% win rate to break even. If you win 50% of trades, you make $50 per trade on average. This is the standard professional approach — balanced risk/reward.
Scenario 2: Aggressive 3:1 Risk/Reward
Higher profit targets. Requires only 25% win rate to break even. Better for trending markets.
Step-by-Step Calculation:
- Risk Amount: $5,000 × 2% = $100
- TP Distance: 2% × 3 = 6%
- Take Profit: $50,000 × (1 + 6%) = $53,000
- Profit Amount: $5,000 × 6% = $300
- Margin Required: $5,000 ÷ 10 = $500
- Return on Margin: ($300 ÷ $500) × 100 = 60%
What this means: You risk $100 to make $300. At 3:1 R:R, you only need 25% win rate to break even. If you win 40% of trades, you make $60 per trade on average. Higher R:R = lower win rate needed, but TP is further away.
Warning: 3:1 R:R means TP is 6% away. In ranging markets, price might reverse before reaching TP. Use 3:1+ R:R in strong trending markets only.
Scenario 3: Multiple Take Profit Levels (Scale Out)
Scale out strategy. Lock in profits at multiple levels while letting winners run.
Multiple TP Levels:
- TP1 (50%): 1.5x R:R = 3% = $51,500. Profit: $75 (50% of $150)
- TP2 (30%): 2x R:R = 4% = $52,000. Profit: $60 (30% of $200)
- TP3 (20%): 3x R:R = 6% = $53,000. Profit: $60 (20% of $300)
- Total Profit: $195 (vs $200 if all at 2x R:R)
What this means: Scale out strategy locks in profits early while letting winners run. You take 50% at 1.5x (locks $75), 30% at 2x (locks $60), and let 20% run to 3x (potential $60). If price reverses after TP1, you still made $75. If it hits all TPs, you made $195.
Pro Tip: After TP1, move stop to breakeven. After TP2, move stop to 1x R:R (lock in 1R profit). This protects profits while letting TP3 run.
Scenario 4: Adjusted for Resistance Level
Technical level is closer than calculated TP. Adjust TP to resistance to avoid reversal.
Step-by-Step Calculation:
- Calculated TP: $50,000 × (1 + 6%) = $53,000 (3:1 R:R)
- Resistance at $52,000 (4% from entry)
- Resistance is closer than calculated TP
- Adjusted TP: $52,000 (resistance level)
- Adjusted R:R: 4% ÷ 2% = 2:1
- Profit: $5,000 × 4% = $200
What this means: Your calculated 3:1 R:R TP was $53,000, but resistance is at $52,000. Price often reverses at resistance, so adjust TP to $52,000. You still get 2:1 R:R, which is good. Better to take profit at resistance than watch price reverse before your TP.
Key Lesson: Always check technical levels before setting TP. If resistance/support is closer than your calculated TP, adjust to the technical level. Price respects technical levels more than arbitrary R:R ratios.
What If Variations
Explore how changing parameters affects your take profit levels:
What if I increase R:R from 2:1 to 3:1?
TP distance increases (4% to 6%), profit increases ($200 to $300), but TP is further away. You need lower win rate (25% vs 34%) but price might reverse before reaching TP. Use higher R:R in trending markets.
What if I widen stop from 2% to 3%?
At 2:1 R:R, TP distance increases (4% to 6%), profit increases ($200 to $300), but risk increases ($100 to $150). Wider stops = wider TPs = larger profits but larger risks. Make sure you can handle the larger risk.
What if I use multiple TP levels?
You lock in profits early (50% at 1.5x) while letting winners run (20% to 3x). Total profit is slightly less ($195 vs $200) but you're protected if price reverses. This is often better than single TP — you get consistent profits with upside potential.
Frequently Asked Questions
What is a good risk/reward ratio?
Most professional traders aim for at least 2:1 risk/reward. This means your profit target is twice your stop distance. At 2:1, you only need to win 34% of trades to break even. At 3:1, you only need 25% win rate. Never take trades with less than 1:1 risk/reward — you're gambling, not trading.
Should I use single or multiple take profit levels?
Multiple TP levels (scaling out) is often better. Take 50% at 1.5x R:R, 30% at 2x R:R, and let 20% run. This locks in profits while giving winners room to run. Single TP is simpler but you might exit too early on big winners or too late if price reverses.
How do support/resistance levels affect take profit?
Support/resistance are key technical levels where price often reverses. Your TP should be placed at or just before these levels. If your calculated TP is beyond resistance (long) or support (short), adjust it to the technical level. This tool automatically adjusts if you provide resistance/support levels.
What if my calculated TP seems too far away?
If TP feels too far, check: (1) Is your stop loss too tight? Wider stops = wider TPs. (2) Is your R:R ratio too high? Try 1.5:1 or 2:1 instead of 3:1. (3) Are you in a ranging market? TPs work better in trending markets. Don't force unrealistic TPs — adjust your strategy instead.
What if my calculated TP seems too close?
Close TPs mean you're risking more than you're gaining — that's bad. If TP is too close, either: (1) Widen your stop loss (if market allows), (2) Increase your R:R target, or (3) Accept that this trade might not have good risk/reward. Never take trades with poor R:R just to enter.
Should I adjust TP based on volatility?
Yes — in volatile markets, price can move further, so you can aim for higher TPs (3:1 or 4:1). In calm markets, 1.5:1 or 2:1 is more realistic. Match your TP to market conditions. This tool uses your stop distance, which should already account for volatility.
What's return on margin?
Return on margin shows your profit as a percentage of margin used. If you make $200 profit using $500 margin, that's 40% return on margin. This helps compare trades across different leverage levels. Higher leverage = higher return on margin (but same risk if sized correctly).
Should I move my TP as price moves in my favor?
Yes — trail your stop loss as price moves toward TP. Once price reaches 1.5x R:R, move stop to breakeven. At 2x R:R, move stop to 1x R:R (lock in 1R profit). This protects profits while letting winners run. Never move TP further away — only closer or leave it.
What if price hits resistance before my TP?
Take profit at resistance. Don't wait for your calculated TP if price hits a strong technical level first. Resistance/support often cause reversals. This tool shows if your TP is beyond resistance — if so, adjust to the technical level. It's better to take profit early than watch it reverse.
Related Tools
Kelly Criterion Calculator
Calculate optimal position size using Kelly Criterion formula for long-term growth maximization. Find fractional Kelly recommendations, expected growth rate, and risk of ruin.
2 matching tags
Stop Loss Distance Calculator
Calculate optimal stop loss distance based on volatility (ATR), support/resistance levels, and risk tolerance. Essential for proper risk management.
Related category