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Target Profit Sales Calculator

Work out target profit sales instantly with clear inputs, formula shown and shareable results.

About Target Profit Sales Calculator

Target profit volume extends break-even analysis: instead of covering fixed costs alone, the contribution per unit must cover fixed costs plus the profit you have committed to. Divide the combined figure by contribution per unit to get the volume.

Formulas

Units required

Units = (Fixed costs + Target profit) / (Price - Variable cost)

Contribution margin ratio

CM ratio % = (Price - Variable cost) / Price x 100

Worked example

With the default values below, Target Profit Sales Calculator returns Units needed for target profit of 6,487. Change any input above and every figure here is recalculated in your browser.

Inputs used

Fixed costs for the period
180,000
Target operating profit
60,000
Selling price per unit
95
Variable cost per unit
58

Results

Units needed for target profit
6,487
Sales value needed
$616,216.22
Contribution per unit
$37.00
Contribution margin ratio
38.95%

Step by step

  1. 1Values used
  2. 2Units required
  3. 3Contribution margin ratio
  4. 4Units needed for target profit= 6,487
  5. 5Sales value needed= 616,216.22
  6. 6Contribution per unit= 37.00
  7. 7Contribution margin ratio= 38.95

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What if contribution per unit is zero or negative?

Then no volume achieves the target — every extra sale loses money. Either raise price or cut variable cost first.

Should tax be included in target profit?

Use pre-tax profit here. If you have an after-tax goal, divide it by (1 - tax rate) before entering it.

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