Stop Loss & Take Profit Calculator
Calculate exact stop loss and take profit price levels for long or short trades.
See your dollar risk, dollar reward, and risk-to-reward ratio instantly.
Why Stop Losses Are Non-Negotiable
Every professional trader uses a stop loss on every trade. A stop loss is a predefined exit point where you close a losing trade — before a small loss becomes a devastating one. The golden rule: cut losses short, let winners run. Without a stop loss, one bad trade can wipe out weeks of gains.
The Formulas
Long Trade (Buying):
- Stop Loss Price = Entry Price × (1 − Stop Loss %)
- Take Profit Price = Entry Price × (1 + Take Profit %)
Short Trade (Selling):
- Stop Loss Price = Entry Price × (1 + Stop Loss %)
- Take Profit Price = Entry Price × (1 − Take Profit %)
Dollar Risk:
- Dollar Risk = |Entry Price − Stop Loss Price| × Shares
- Dollar Reward = |Take Profit Price − Entry Price| × Shares
Risk-to-Reward Ratio:
- R:R = Take Profit % ÷ Stop Loss %
ATR-Based Stops
Many professionals set stops using the Average True Range (ATR) — a measure of how much a stock typically moves in a day. A common rule: set your stop 1.5× to 2× the ATR below entry (long) or above entry (short). This avoids getting stopped out by normal market noise.
The 1:2 Minimum R:R Rule
Most successful traders require a minimum 1:2 risk-to-reward ratio — meaning for every $1 risked, you aim to make at least $2. At 1:2, you only need to win 34% of your trades to break even. At 1:3, only 25%.
| R:R Ratio | Win Rate Needed to Break Even |
|---|---|
| 1:1 | 50% |
| 1:2 | 34% |
| 1:3 | 25% |
| 1:4 | 20% |
Trailing Stops
A trailing stop moves with the price as it goes in your favor, locking in profits. For example, a 5% trailing stop on a stock that rises from $50 to $60 would move the stop from $47.50 to $57 — protecting $7 of the $10 gain.
Worked Example
- Entry price: $50.00 (long)
- Stop loss: 2% → Stop price = $50 × (1 − 0.02) = $49.00
- Take profit: 4% → Target price = $50 × (1 + 0.04) = $52.00
- Position: 100 shares
- Dollar risk: ($50 − $49) × 100 = $100
- Dollar reward: ($52 − $50) × 100 = $200
- R:R ratio: 4% ÷ 2% = 1:2 ✓
Pro Tips
- Never move a stop loss further away from entry once a trade is open (widening losses).
- Always set your stop before entering a trade — decide your exit before your entry.
- Account for spread and commissions when calculating real break-even levels.
- Volatility matters: a 2% stop on a calm blue-chip stock is very different from a 2% stop on a volatile small-cap.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.