Business calculator
Free Target Profit Calculator
Calculate the units and sales revenue required to reach a target profit.
Target Profit Calculator
Enter values to see a focused result.
Understand the result
Calculate sales needed for a target profit
Target profit estimates the sales required to cover fixed costs and reach a chosen profit. It uses contribution margin per unit, selling price minus variable cost, then rounds required units upward so the target is not understated.
Focused formula
The result uses only the inputs relevant to this business question.
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Values are calculated locally and are not stored or sent anywhere.
Use the calculator
Enter the figures you already have
- 1
Add your inputs
Use the labels and period shown in the form.
- 2
Review the math
Results update as your assumptions change.
- 3
Apply the result
Use it as a planning reference for the next decision.
Contribution margin drives the target
If fixed costs are $12,000, target profit is $6,000, selling price is $80, and variable cost is $50, contribution per unit is $30. Required units are ($12,000 + $6,000) ÷ $30 = 600 units, and required revenue is 600 × $80 = $48,000.
Break-even versus target profit
Break-even answers when profit reaches zero: fixed costs divided by contribution per unit. Target profit adds the desired profit to fixed costs before dividing, so it will require more units when the target is positive.
Assumptions and limitations
The result assumes fixed costs, selling price, and variable cost remain stable. It does not model taxes, sales commissions, discounts, refunds, production capacity, or price changes. Use the result as a planning threshold, not a sales guarantee.
Example: a product launch target
Fixed costs: $12,000 Target profit: $6,000 Selling price per unit: $80 Variable cost per unit: $50 Contribution per unit: $80 − $50 = $30 Required units: ($12,000 + $6,000) ÷ $30 = 600 units Required revenue: 600 × $80 = $48,000 The calculator rounds units upward because a partial unit cannot be sold.
Frequently asked questions
Practical questions people ask about this tool
What is contribution margin per unit?
It is selling price per unit minus variable cost per unit. It is the amount available from each sale to cover fixed costs and target profit.
Why are required units rounded upward?
Rounding upward prevents the displayed target from falling short because a fraction of a sale cannot normally be completed.
Does required revenue include taxes or commissions?
No. The simple model uses the entered selling price and costs. Add those items to your assumptions separately when they affect the economics of each sale.
What if capacity is below the required units?
The target may be operationally unreachable at the current capacity. Use that result to revisit price, variable cost, fixed cost, or delivery capacity.
Related tools
Related business tools
Break-Even Calculator
Find the zero-profit sales threshold.
Contribution Margin Calculator
Inspect contribution before fixed costs.
Profit Margin Calculator
Review profit relative to selling price.
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