Calculate the revenue you need each month to hit a target.
Fixed costs plus the profit goal are divided by the margin to size monthly revenue. Backing into the number converts a vague annual goal into a concrete monthly quota the team can chase.
Monthly Sales Target
Revenue = (fixed + target profit) / margin
Revenue = (fixed + target profit) / margin Fixed costs plus the profit goal are divided by the margin to size monthly revenue.
Backing into the number converts a vague annual goal into a concrete monthly quota the team can chase.
This calculator takes 3 inputs: Target profit, Fixed monthly costs, Target margin. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.