diff --git a/libraries/AC_WPNav/AC_WPNav.cpp b/libraries/AC_WPNav/AC_WPNav.cpp
index f851989505..0f03c199c7 100644
--- a/libraries/AC_WPNav/AC_WPNav.cpp
+++ b/libraries/AC_WPNav/AC_WPNav.cpp
@@ -35,6 +35,39 @@ AC_WPNav::AC_WPNav(AP_InertialNav* inav, APM_PI* pid_pos_lat, APM_PI* pid_pos_lo
 /// simple loiter controller
 ///
 
+/// set_loiter_target - set initial loiter target based on current position and velocity
+void AC_WPNav::set_loiter_target(const Vector3f& position, const Vector3f& velocity)
+{
+    float linear_distance;      // half the distace we swap between linear and sqrt and the distace we offset sqrt.
+    float linear_velocity;      // the velocity we swap between linear and sqrt.
+    float vel_total;
+    float target_dist;
+
+    // avoid divide by zero
+    if( _pid_pos_lat->kP() <= 0.1 ) {
+        set_loiter_target(position);
+        return;
+    }
+
+    // calculate point at which velocity switches from linear to sqrt
+    linear_velocity = MAX_LOITER_POS_ACCEL/_pid_pos_lat->kP();
+
+    // calculate total current velocity
+    vel_total = safe_sqrt(velocity.x*velocity.x + velocity.y*velocity.y);
+
+    // calculate distance within which we can stop
+    if (vel_total < linear_velocity) {
+        target_dist = vel_total/_pid_pos_lat->kP();
+    } else {
+        linear_distance = MAX_LOITER_POS_ACCEL/(2*_pid_pos_lat->kP()*_pid_pos_lat->kP());
+        target_dist = linear_distance + (vel_total*vel_total)/(2*MAX_LOITER_POS_ACCEL);
+    }
+    target_dist = constrain(target_dist, 0, MAX_LOITER_OVERSHOOT);
+
+    _target.x = position.x + (target_dist * velocity.x / vel_total);
+    _target.y = position.y + (target_dist * velocity.y / vel_total);
+}
+
 /// move_loiter_target - move loiter target by velocity provided in front/right directions in cm/s
 void AC_WPNav::move_loiter_target(int16_t vel_forward_cms, int16_t vel_right_cms, float dt)
 {
diff --git a/libraries/AC_WPNav/AC_WPNav.h b/libraries/AC_WPNav/AC_WPNav.h
index 1ddd141f6d..51e1213fe0 100644
--- a/libraries/AC_WPNav/AC_WPNav.h
+++ b/libraries/AC_WPNav/AC_WPNav.h
@@ -17,6 +17,7 @@
 #define MAX_LOITER_POS_ACCEL            250
 #define MAX_LOITER_VEL_ACCEL            400         // should be 1.5 times larger than MAX_LOITER_POS_ACCEL
 #define MAX_LOITER_POS_VEL_VELOCITY     1000
+#define MAX_LOITER_OVERSHOOT            1000        // maximum distance (in cm) that we will allow the target loiter point to be from the current location when switching into loiter
 #define WPINAV_MAX_POS_ERROR            2000.0f     // maximum distance (in cm) that the desired track can stray from our current location.
 #define WP_SPEED                        500         // default horizontal speed betwen waypoints in cm/s
 
@@ -37,6 +38,9 @@ public:
     /// set_loiter_target in cm from home
     void set_loiter_target(const Vector3f& position) { _target = position; }
 
+    /// set_loiter_target - set initial loiter target based on current position and velocity
+    void set_loiter_target(const Vector3f& position, const Vector3f& velocity);
+
     /// move_loiter_target - move destination using forward and right velocities in cm/s
     void move_loiter_target(int16_t vel_forward_cms, int16_t vel_right_cms, float dt);