Profit Target Calculator
Calculate how much revenue or how many sales you need to achieve your profit target. Includes break-even point and profit margin.
What is a profit target?
A profit target is the amount you want to retain as a business owner after all costs have been deducted. This calculator helps you determine how much revenue or how many sales you need to achieve that goal.
How is it calculated?
The tool uses the formula:
Margin per product = Selling price – Variable costs
Break-even point = Fixed costs ÷ Margin
Required number of sales = (Fixed costs + Profit target) ÷ Margin
This gives you immediate insight into your minimum sales volume.
When should you use this calculator?
- New entrepreneurs
- Online stores
- Freelancers
- Product pricing
- Annual planning
- Setting a revenue target
Why is this important?
Without insight into your break-even point, you risk:
- Pricing too low
- Unrealistic revenue targets
- Ongoing losses
With this tool, you can make your financial planning concrete and measurable.