diff --git a/ArduPlane/mode.h b/ArduPlane/mode.h
index 1c20b23582..64e4ce0c74 100644
--- a/ArduPlane/mode.h
+++ b/ArduPlane/mode.h
@@ -1,6 +1,7 @@
 #pragma once
 
 #include <AP_Param/AP_Param.h>
+#include <AP_Common/Location.h>
 #include <stdint.h>
 
 class Mode
@@ -474,8 +475,8 @@ protected:
     AP_Int16 level_alt;
     AP_Int8 level_pitch;
 
-    int32_t initial_alt_cm;
     bool takeoff_started;
+    Location start_loc;
 
     bool _enter() override;
 };
diff --git a/ArduPlane/mode_takeoff.cpp b/ArduPlane/mode_takeoff.cpp
index 813030e765..b9763dfc25 100644
--- a/ArduPlane/mode_takeoff.cpp
+++ b/ArduPlane/mode_takeoff.cpp
@@ -81,13 +81,12 @@ void ModeTakeoff::update()
         const float alt = target_alt;
         const float direction = degrees(plane.ahrs.yaw);
 
+        start_loc = plane.current_loc;
         plane.prev_WP_loc = plane.current_loc;
         plane.next_WP_loc = plane.current_loc;
         plane.next_WP_loc.alt += alt*100.0;
         plane.next_WP_loc.offset_bearing(direction, dist);
 
-        initial_alt_cm = plane.current_loc.alt;
-
         plane.crash_state.is_crashed = false;
 
         plane.auto_state.takeoff_pitch_cd = level_pitch * 100;
@@ -105,9 +104,17 @@ void ModeTakeoff::update()
     // TKOFF_LVL_ALT or we pass the target location. The check for
     // target location prevents us flying forever if we can't climb
     if (plane.flight_stage == AP_Vehicle::FixedWing::FLIGHT_TAKEOFF &&
-        (plane.current_loc.alt - initial_alt_cm >= level_alt*100 ||
-         plane.current_loc.past_interval_finish_line(plane.prev_WP_loc, plane.next_WP_loc))) {
-        // reached level alt
+        (plane.current_loc.alt - start_loc.alt >= level_alt*100 ||
+         start_loc.get_distance(plane.current_loc) >= target_dist)) {
+        // reached level alt, re-calculate bearing to cope with systems with no compass
+        // or with poor initial compass
+        float direction = start_loc.get_bearing_to(plane.current_loc) * 0.01;
+        float dist_done = start_loc.get_distance(plane.current_loc);
+        const float dist = target_dist;
+
+        plane.next_WP_loc = plane.current_loc;
+        plane.next_WP_loc.offset_bearing(direction, MAX(dist-dist_done, 0));
+
         plane.set_flight_stage(AP_Vehicle::FixedWing::FLIGHT_NORMAL);
         plane.complete_auto_takeoff();
     }