Target Profit Units Calculator
Setting a profit goal is only useful if you know how many units it takes to get there. This target profit calculator turns a profit objective into a concrete sales target. It uses cost-volume-profit analysis: each unit sold contributes its contribution margin toward fixed costs first, then toward profit. Enter the selling price, variable cost per unit, total fixed costs, and your target operating profit, and the calculator returns the contribution margin per unit, the units required, and the matching sales in dollars.
Target profit formula
Contribution margin per unit = price - variable cost per unit
Units required = (fixed costs + target profit) / contribution margin per unit
Required sales = units required * price
Each unit's contribution margin first covers fixed costs, then builds the target profit. Setting the target profit to zero reduces the formula to the break-even point.
Using the target profit model
- The model assumes price and variable cost per unit stay constant across the range.
- Break-even is the special case where target profit is zero.
- For an after-tax goal, gross up to a pre-tax target before entering it.
- A higher contribution margin per unit lowers the units needed for any target.
- Use it to test pricing and cost scenarios against a profit objective.
Target profit units: frequently asked questions
How many units do I need to sell to hit a target profit?
Units required = (fixed costs + target profit) / contribution margin per unit, where contribution margin per unit is price minus variable cost per unit. You add the target profit to fixed costs because each unit's contribution margin must cover both before profit is earned.
What is the target profit sales dollar formula?
Required sales dollars = (fixed costs + target profit) / contribution margin ratio, where the contribution margin ratio is the contribution margin per unit divided by price. This converts the unit target into a revenue target.
How does target profit relate to break-even?
Break-even is simply the target profit formula with a target profit of zero: units = fixed costs / contribution margin per unit. Setting a positive target profit raises the required units and sales above the break-even point by the profit divided by the contribution margin.
Should the target profit be before or after tax?
This calculator uses an operating (pre-tax) target profit. If you have an after-tax goal, convert it to pre-tax first by dividing the after-tax target by (1 minus the tax rate), then enter that pre-tax figure as the target profit.
What inputs are required?
Enter the selling price per unit, the variable cost per unit, total fixed costs, and the target operating profit. The calculator returns the contribution margin per unit, the units needed to reach the target, and the corresponding required sales in dollars.
Official sources
- U.S. Small Business Administration: Calculate your startup costs.
- U.S. Small Business Administration: Manage your finances.
Reviewed by the CalculatorHub team, edited by James Graham, 16 June 2026. See our methodology.