How it works
Find the sales volume needed to cover fixed costs and earn a target operating profit.
A worked example
With fixed costs of 10,000, target profit of 5,000, price of 50, and variable cost of 30, you need to sell 750 units.
Before you use the result
Assumes constant selling price and variable cost per unit, one sales mix, and fixed overhead for the period. Whole-unit sales are rounded up. Capacity limits, demand, stepped costs, and tax are not modeled.
Keep inputs on a consistent basis. Use the same currency and time period, and check whether your amounts include tax. Calculations use full precision internally; displayed monetary values are rounded to two decimals.
Questions, answered.
How is this different from break-even?
Break-even covers fixed and variable costs with no profit target. This tool adds your target operating profit to fixed costs before dividing by contribution per unit.
Why does the calculator round units up?
The model assumes whole units. Rounding down could leave you short of the target profit.
Does this predict after-tax profit?
No. It is a simplified operating model and does not automatically include financing costs, taxes, or changes in fixed costs at higher volume.
Calculation methods: read our methodology. Found a problem? Send a correction.