Calculating your target price is straightforward once you know the Profit Target formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Profit Target Calculator.
What is Profit Target?
The Profit Target calculation tells you your target price from a few simple inputs. The figure you are solving for here is the target price, expressed in INR.
The Profit Target formula
The core formula is:
Target price = Entry price × (1 + Target gain ÷ 100)Here is what each input means:
- Entry price — a money amount. Example: ₹100.
- Target gain — a percentage, such as an annual rate. Example: 15%.
- Number of shares — a number. Example: 200.
How to calculate it step by step
- Write down the entry price (for example, ₹100).
- Write down the target gain (for example, 15%).
- Write down the number of shares (for example, 200).
- Apply the formula above to get your target price.
- Double-check the result with the Profit Target Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Entry price | ₹100 |
| Target gain | 15% |
| Number of shares | 200 |
| Target price | ₹115.00 |
| Total profit at target | ₹3,000.00 |
With entry price of ₹100, target gain of 15% and number of shares of 200, the target price works out to ₹115.00.
Example 2
With entry price of ₹200, target gain of 15% and number of shares of 200, the target price works out to ₹230.00.
| Result | Value |
|---|---|
| Target price | ₹230.00 |
| Total profit at target | ₹6,000.00 |
Example 3
With entry price of ₹50, target gain of 15% and number of shares of 200, the target price works out to ₹57.50.
| Result | Value |
|---|---|
| Target price | ₹57.50 |
| Total profit at target | ₹1,500.00 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Profit Target Calculator does it instantly, for free, with the formula and a worked example built in.
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