Target Profit Sales Units Calculator
How many whole units cover fixed costs and my chosen operating profit target? Check the formula, a worked example and the stated measurement limits.
Result for the values shown.
Calculations run in your browser.
What to enter
| Input | Meaning and units |
|---|---|
| Fixed period costs (currency) | Enter fixed period costs in currency. Use the measurement basis described below. |
| Target operating profit (currency) | Enter target operating profit in currency. Use the measurement basis described below. |
| Unit selling price (currency/unit) | Enter unit selling price in currency/unit. Use the measurement basis described below. |
| Variable cost per unit (currency/unit) | Enter variable cost per unit in currency/unit. Use the measurement basis described below. |
Understanding your result
Explore the effect of price and variable cost on required volume. Reconcile the required count with operational capacity and demand separately.
Common mistakes
- Margin must be positive to produce a finite sales requirement.
- Rounding down could miss the profit target.
- Mixing annual and monthly periods, or leaving out a cost that the model does not include.
Check your calculation
- Compare a simple one-period or zero-change case with hand arithmetic before applying a longer scenario.
Choose a consistent measurement basis
Use one period and one product mix. Fixed costs should stay fixed within the relevant sales range; include all variable costs attributable to each sale.
A second independently worked case
One currency unit of target divided by two contribution rounds up to one sale, yielding two. Inputs: Fixed period costs: 0 currency; Target operating profit: 1 currency; Unit selling price: 3 currency/unit; Variable cost per unit: 1 currency/unit. Results: Required whole-unit sales: 1 units; Modeled profit at rounded units: 2 currency.
Precision and output units
Displayed results: Required whole-unit sales in units, rounded to 0 decimal places; Modeled profit at rounded units in currency, rounded to 2 decimal places. Display rounding does not establish the precision of the original measurements or estimates.
Calculation checks, sources and review limits
How many whole units cover fixed costs and my chosen operating profit target?
How many whole units cover fixed costs and my chosen operating profit target? Check the formula, a worked example and the stated measurement limits.
Common uses
- How many whole units cover fixed costs and my chosen operating profit target
- Compare Target Profit Sales Units across scenarios under matching definitions.
How it works
Subtract variable unit cost from price, divide fixed costs plus target profit by positive unit contribution, and round upward. Recalculate profit at the rounded count to check that the target is covered.
Worked example
Contribution is 20; (3,000 + 2,000) ÷ 20 = 250 units. Enter fixed period costs 3000 currency, target operating profit 2000 currency, unit selling price 50 currency/unit, variable cost per unit 30 currency/unit. The independently worked result is required whole-unit sales 250 units; modeled profit at rounded units 2000 currency. Compare this example with your reporting definitions before substituting your own figures.
FAQ
Why round required units upward?
Indivisible sales units must be whole. Rounding down can leave total contribution below fixed costs plus the profit target. The calculator checks modeled profit at the rounded count.
What if contribution per unit is zero or negative?
The required positive-contribution sales calculation has no finite solution under the model. More sales with negative contribution cannot cover additional fixed costs or a positive target.