Tool 47

Trading and options · Long and short stock scenarios

Target Price Calculator

Calculate the exit price for a long or short stock trade from a net cash-profit or return objective.

Compare the mathematical target with the first grid price that meets the objective.

Supplied stock trade

Use the same major currency for all amounts. Enter decimals with a period and no grouping separators.

Formatting only. The calculator performs no currency conversion.

Enter zero charges if none apply. An optional increment finds the nearest grid price that meets the net objective.

Modeled target and net profit

Enter your trade assumptions or load the worked example.

The calculation assumes the entire position exits at the shown price. Actual fills may differ or fail to occur.

Learn to calculate a target price

Follow worked long and short examples, including the effect of charges and the price increment.

Read the target price guide

Formula and methodology

Target = entry ± (desired net profit + round-trip charges) ÷ shares.

Target = entry ± (desired net profit + round-trip charges) ÷ shares. Add the price move for a long and subtract it for a short. In percentage mode, desired net profit equals entry notional times the supplied percentage divided by 100. If an increment is supplied, round long targets up and short targets down.

Definitions

A target price is the hypothetical sell price for a long trade or buyback price for a short trade. Entry notional is the positive entry price multiplied by shares. Net profit is gross profit less supplied round-trip charges.

Verified worked examples

For 20 shares at 50, a net profit objective of 49 and charges of 4 require gross profit of 53. The long mathematical target is 52.65 and the short target is 47.35. A 0.10 grid gives 52.70 and 47.30 respectively. Either aligned exit yields 50 net. A 4.9% objective on 1,000 of entry notional gives the same results.

Interpretation

The adjacent less favorable grid price shows why one more favorable step is needed. If the grid offers no positive supported price that meets the objective, the mathematical result remains available. A zero objective represents break-even after charges.

Inputs and interpretation

Choose long or short and a net-profit or net-return objective. Enter positive share quantity and entry price, explicit round-trip charges and an optional price increment. Use zero charges when none apply. Changing the objective mode clears its value.

Assumptions and limitations

One full exit, a single currency, and the same fixed charges at either hypothetical price. The price grid is anchored at zero. The return percentage is for the whole trade and uses entry notional, including for shorts. It excludes margin and borrowing.

Supported domain and common mistakes

Inputs allow up to 12 decimal places. Money, quantity and the increment are bounded by 1 trillion. Percent objectives range from 0% to 100%. Target prices must be positive and at most 1 trillion. Mathematical prices and return percentages can be rounded to 24 significant digits. Grid calculations use unrounded values.

Keep the objective net of the supplied charges. A long exits by selling, and a short exits by buying back. Nearest-price rounding can undershoot the objective. Use one major currency for the entry, fees and increment.

Frequently asked questions

How do I calculate the price for my desired stock profit?
Divide the desired net profit plus total charges by shares. Add that price move to entry for a long trade, or subtract it for a short.
Can I calculate a break-even price?
Yes. Enter zero net profit or zero net return and supply charges. With zero charges, the mathematical break-even price is entry.
What is the return based on?
The return uses entry price multiplied by share quantity. It does not use account equity, margin or the amount borrowed.
Why is my short target unsupported?
A large objective or high charges can require a buyback at zero or below. This calculator requires a positive exit price.
Why does the aligned price yield more profit?
When the exact target falls between grid prices, the first price that meets the objective can yield a slightly larger gain.
Does selecting a currency convert prices?
The selection changes display only. Enter all money in the same major currency.

Sources and educational scope

Educational calculation for hypothetical fills. It excludes fair value, price forecasts, tax, currency conversion, margin, venue tick schedules and execution eligibility. A limit order can remain unfilled.

Reviewed . AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.

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