Break-Even With Target Profit Calculator

About this calculator

Break-even analysis normally answers 'how many units do I need to sell to cover my costs,' but extending it with a target profit answers the more useful business question: how many units and how much revenue does it take to clear costs and land a specific profit number on top. The formula builds directly on standard cost-volume-profit (CVP) analysis: target units = (fixed costs + target profit) ÷ contribution margin per unit, where contribution margin per unit is the selling price minus the variable cost of producing one unit.

Small business owners, startup founders and financial analysts use this calculation when setting sales targets for a quarter or launch, when deciding whether a target profit is realistic given current pricing and cost structure, and when a change in fixed costs, price or variable cost needs to be translated into a new required sales volume. It turns a profit goal expressed in dollars into a concrete, actionable units-to-sell number.

This calculator takes your fixed costs, target profit, selling price and variable cost per unit, and returns the units and revenue you need to reach that target profit.