Target Profit Calculator

Calculate the sales volume required to achieve your target profit using CVP analysis.

$
$
$
$

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.