How do I calculate units needed for a target profit?

Units = (Fixed Costs + Target Profit) / Contribution Margin per Unit. If fixed costs = $100K, target profit = $50K, CM per unit = $25: units needed = 6,000 units.

How does taxation affect target profit volume?

To achieve $50K after-tax at 25% tax rate, you need $66,667 pre-tax profit. Include pre-tax target in the formula.

How is target profit used in sales quota setting?

Convert the target revenue to individual sales rep quotas by dividing by number of reps and applying a regional or product mix allocation.

Target Profit Volume Calculator

Calculate required sales volume to achieve a target profit. Units needed = (Fixed Costs + Target Profit) / CM per Unit. Essential for sales planning and quota setting.

Principal ($)

Annual Rate (%)

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Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate required sales volume to achieve a target profit. Units needed = (Fixed Costs + Target Profit) / CM per Unit. Essential for sales planning and quota setting. Use the target profit volume result to inform your calculation.

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Target Profit Volume Calculator

How to Use

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Frequently Asked Questions

How do I calculate units needed for a target profit?

How does taxation affect target profit volume?

How is target profit used in sales quota setting?