An R-multiple target scales the distance between your planned entry and stop. If the stop is 4% away from entry, a 1R target is one stop-distance in the profitable direction, a 2R target is twice that distance, and a 3R target is three times it. The take-profit and stop-loss calculator maps those levels for a long or short setup; it does not decide whether the stop or target is suitable for a trade.
What 1R measures
R is the planned price distance from entry to stop, expressed in the direction of the trade. For a long, the stop is below entry; for a short, it is above entry. A 2R target is twice the entry-to-stop distance in the favorable direction. This describes price geometry, not a guaranteed account return or probability of success.
In percent-stop mode, the calculator derives the stop from entry and the entered stop distance. In price-stop mode, it uses the stop price you enter and derives risk distance from that price. With the calculator's R target mode, the target price is constructed by adding the selected multiple of the stop distance to entry in the direction of the trade. Its implementation then calculates the percent move from entry, multiplies that move by leverage for estimated ROE, and multiplies position notional by the move fraction for simple P&L.
For a long, the calculation is equivalent to:
stop = entry × (1 − stop distance ÷ 100)
R distance = entry − stop
target at nR = entry + n × R distance
For a short, the stop and target directions reverse:
stop = entry × (1 + stop distance ÷ 100)
R distance = stop − entry
target at nR = entry − n × R distance
The tool also allows fixed percentage targets. In that mode, a target is calculated from entry and a target percentage rather than by multiplying the stop distance. Check the selected target mode before interpreting the outputs.
Worked example: a long with a 4% stop
Assume a hypothetical long entry at $100, a stop distance of 4%, R targets of 1, 2, and 3, 3× leverage, and $500 position notional. The calculator derives a stop at $96:
stop = $100 × (1 − 4 ÷ 100) = $96
R distance = $100 − $96 = $4
1R target = $100 + 1 × $4 = $104
2R target = $100 + 2 × $4 = $108
3R target = $100 + 3 × $4 = $112
Those target prices represent price moves of 4%, 8%, and 12% from entry. The calculator's simple outputs are:
1R: estimated ROE = 4% × 3 = 12%; P&L = $500 × 4% = $20
2R: estimated ROE = 8% × 3 = 24%; P&L = $500 × 8% = $40
3R: estimated ROE = 12% × 3 = 36%; P&L = $500 × 12% = $60
At the stop, the price move is −4%, estimated ROE is −12%, and the calculator's notional-based P&L is −$20. This matches the implementation: size × move ÷ 100 at each target, with stop P&L calculated from the stop move. These are arithmetic outputs using the entered notional and leverage; they do not include fees, funding, slippage, or liquidation.
A short-side check
Reverse the direction while keeping the same $100 entry and 4% stop distance. A short stop is $104, so R distance is also $4. Its 1R, 2R, and 3R targets are $96, $92, and $88. Prices move downward in the profitable direction for a short. A quick directional check catches one of the common setup errors: a short target above entry or a long stop above entry does not match the intended direction.
The percentage movement differs slightly between a long and short if you compare the same dollar distance using different bases. For example, a $4 fall from $100 is 4% of entry, but the $4 distance is about 3.85% of a $104 stop price. The calculator's target move and ROE are measured from entry, while R targets are based on the absolute entry-to-stop price distance. Do not calculate target percentages from the stop price when the tool is using R mode.
Separate price levels from trade risk
An R target only says how far the target is from entry relative to the stop distance. It does not say how much account equity is at risk. That depends on position size, contract value, and venue-specific rules. This calculator accepts a USD notional to estimate simple P&L, but it does not size a position from account equity or a risk budget. Use the position size calculator for a separate estimate based on account size, risk percentage, and stop distance.
Leverage changes the displayed ROE estimate because the calculator multiplies price move by leverage. It does not change the target price derived from entry and stop. The P&L output uses notional multiplied by price movement, not margin multiplied by ROE. Fees, funding, liquidation, slippage, and partial fills are excluded, so actual account results can differ substantially from the displayed levels and estimates.
Use the calculator
Use the calculator to enter the entry price, choose long or short, and select either a percentage stop distance or a stop price. Select R targets when you want each take-profit level to scale from the stop distance; enter the desired multiples for the three target fields. Add leverage and position notional only if you want the tool's simplified ROE and P&L estimates. Leave them aligned with the contract and quote denomination you are planning to model.
For a fee-aware ratio and break-even win-rate estimate, see the risk-reward calculator, which models fees but uses its own inputs and assumptions. The crypto profit calculator estimates spot P&L using entry, exit, quantity or investment, and fees. Do not combine outputs as if the tools share a single position model; match their inputs before comparing them.
Common mistakes
- Putting the stop on the wrong side. A long stop belongs below entry; a short stop belongs above entry for the intended setup.
- Confusing percent targets with R targets. An R target multiplies entry-to-stop distance. A fixed-percent target is calculated directly from entry.
- Measuring the R distance from the stop price. In this tool, the distance is the absolute entry-to-stop difference.
- Treating ROE as price movement. ROE is the calculator's price-move percentage multiplied by entered leverage; the target price is unchanged by leverage.
- Reading notional P&L as account risk. The output uses notional and price move but does not calculate a risk-budget-based position size.
- Assuming costs are included. Fees, funding, slippage, and liquidation are excluded from this tool's target and P&L estimate.
- Assuming a target will fill. A calculated level is a planning reference. It does not account for gaps, liquidity, or execution behavior.
FAQ
What does 2R mean?
It means the target is two times the entry-to-stop price distance away from entry in the favorable direction. It is a distance multiple, not a 2% target by definition.
Does leverage move my take-profit levels?
No. In R mode, the target prices depend on entry and stop distance. Leverage only scales the calculator's estimated ROE.
Are fees or funding included in the target P&L?
No. This calculator excludes fees, funding, slippage, and liquidation. A separate fee-aware planning tool is needed to estimate those effects.
Can I enter a stop price instead of a percentage?
Yes. Choose price mode and enter the stop price. The calculator uses its difference from entry as the R distance and validates that the stop is on the correct side.
Not financial advice. These levels are calculations from user inputs, not trade recommendations.