Target Profit Calculator
Calculate the sales volume required to achieve your target profit using CVP analysis.
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How It Works
Contribution Margin (CM) = Selling Price − Variable Cost per Unit
Before-Tax Target:
Target Units = (Fixed Costs + Target Income) ÷ CM per Unit
After-Tax Target:
Target Units = (Fixed Costs + [Target Income ÷ (1 − Tax Rate)]) ÷ CM per Unit
Percentage of Sales Target:
Target Units = Fixed Costs ÷ (CM per Unit − (% × Selling Price))
This calculator uses Cost-Volume-Profit (CVP) analysis to determine the sales volume needed to achieve your desired profit level.