Updated Trading & Investing Tool

Target Price Calculator

Set profit targets, calculate required entry prices, plan averaging down exits, and estimate valuation-based target prices for your trades and investments.

Profit Target from Entry Required Entry Price Averaging Down Targets Valuation Target Price

Advanced Target Price Calculator

Switch between Profit Target, Required Entry, Averaging Down and Valuation modes to plan your trades, manage risk and convert return goals into concrete price levels.

Target Price Calculator – Plan Profit Targets, Entries and Valuation Levels

The Target Price Calculator helps traders and investors translate return goals, risk levels and valuation ideas into specific price levels. Instead of using rough intuition, you can set profit targets from an entry price, compute the maximum entry that fits a target, plan averaging down exits and build valuation-based targets using earnings and price-to-earnings multiples.

Whether you trade short term or invest long term, having clear target prices can improve discipline. You know in advance where you plan to take profits, where risk becomes unacceptable and how new buys change your average cost and required exit. This calculator brings those calculations together so you can test scenarios before you place a trade.

Mode 1: Profit Target from Entry

This mode takes your entry price, desired percentage gain and position size to compute a price target and potential profit. You can optionally add a stop-loss level to see the reward-to-risk ratio for the trade.

Profit Target Formula

Target Price = Entry Price × (1 + Target% ÷ 100)

Potential profit for the position is computed as:

Potential Profit = (Target Price − Entry Price) × Position Size

If you enter a stop-loss price, the calculator also derives reward-to-risk:

Reward-to-Risk = (Target Price − Entry Price) ÷ (Entry Price − Stop Price)

Mode 2: Required Entry for a Target Price

Sometimes you know your target price and required return and want to know how high you can enter while still meeting that target. This mode solves for maximum entry price from a target and desired gain percentage.

Required Entry Formula

Required Entry Price = Target Price ÷ (1 + Desired Gain% ÷ 100)

The calculator also shows potential profit per share between required entry and target and the reward-to-risk ratio based on your stop-loss level.

Mode 3: Averaging Down Target Price

The averaging down mode combines up to three separate buys into a single blended position. It calculates the total quantity, average cost per share, break-even price and a target price for a desired overall gain on the whole position.

Average Cost and Target

Average Cost = (P1Q1 + P2Q2 + P3Q3) ÷ (Q1 + Q2 + Q3)

The break-even price is simply the average cost. A desired overall gain is applied as:

Target Price = Average Cost × (1 + Desired Overall Gain% ÷ 100)

This helps you see how new buys change your average and how far the price must climb to reach your goal for the full position.

Mode 4: Valuation Target Price

The valuation mode is useful for long-term investors who prefer to anchor targets to fundamentals such as earnings and price-to-earnings multiples. You enter earnings per share, a target P/E and a margin of safety. The calculator outputs a fair value and a more conservative target that includes your margin of safety.

Valuation Formulas

Fair Value Price = EPS × Target P/E
MOS Target Price = Fair Value Price × (1 − Margin of Safety% ÷ 100)

The calculator also shows the percentage discount between fair value and the MOS target, plus the implied P/E at that discounted price.

Why Use a Target Price Calculator?

Having clear numerical targets can improve trade planning and risk management. Instead of reacting to emotions as prices move, you can predefine:

  • Where you expect to take profits for a given return.
  • Which entry prices no longer meet your risk–reward rules.
  • How additional buys change your break-even and profit targets.
  • What valuation levels look attractive compared with current price.

The calculator supports both short-term traders and long-term investors by expressing these ideas in concrete prices, position sizes and reward-to-risk ratios.

Examples of Target Price Calculations

Example 1: Profit Target from Entry

You buy a stock at 100 and want a 25% gain. The profit target mode calculates a target of 125. With a 200 unit position, potential profit is 5,000. If your stop-loss is at 95, the risk per share is 5 and the reward per share is 25, giving a reward-to-risk ratio of 5:1.

Example 2: Required Entry for a Planned Target

You believe a stock could reach 80 and you want at least a 20% return. The required entry mode solves for a maximum entry of 66.67. Buying above that reduces your potential percentage gain below your target.

Example 3: Averaging Down

You buy 100 shares at 50 and later add 100 shares at 40. Your average cost is 45. If you want a 15% overall gain on the combined position, your target price is about 51.75. The calculator shows total quantity, average cost, break-even and target.

Example 4: Valuation Target Price

A company earns 5 per share and you believe a fair P/E for the business is 18. That implies a fair value price of 90. With a 20% margin of safety, your MOS target price is 72. The calculator shows that the MOS price is a 20% discount to fair value and that the implied P/E at 72 is 14.4.

How to Use This Tool Effectively

  • Use the Profit Target tab when planning exits from a known entry price.
  • Use the Required Entry tab to avoid entering too high relative to your return goal.
  • Use the Averaging Down tab when scaling into a position at different prices.
  • Use the Valuation tab for fundamental, long-term price targets based on earnings and P/E.
  • Combine this calculator with your risk rules, diversification and overall portfolio plan.

The Target Price Calculator does not predict market moves, but it does help you turn abstract goals into price levels and risk metrics you can act on systematically.

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Target Price Calculator FAQs

Frequently Asked Questions About Target Prices

Learn how to interpret and use the target prices, entries and valuation outputs from this calculator.

A target price is a planning reference, not a guarantee. Many traders use it as a guideline and still adapt to new information, trend strength and risk conditions rather than exiting automatically at a single level.

Some traders prefer setups with at least 2:1 or 3:1 reward-to-risk, while others accept lower ratios with higher win rates. The right level depends on your strategy, time frame and risk tolerance.

Averaging down lowers your average entry but increases your total position size and exposure. The calculator shows how your average cost and required target change, but it is up to you to decide whether the added risk is appropriate.

Valuation-based targets are usually more relevant for medium and long-term investing. Short-term traders often focus more on technical levels, volatility and intraday setups, though some still monitor valuation as context.

No. The calculator works with the prices and assumptions you manually input. It does not fetch live quotes or account data. You can pair it with your trading platform or broker data while planning trades.

All outputs are mathematical results of your inputs. They do not predict where markets will move. Use them as planning tools alongside research, risk management and proper diversification.

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