Target Profit Calculator
Find the exact sales volume and revenue required to hit your desired business profit goal.
Find the exact sales volume and revenue required to hit your desired business profit goal.
Calculate the selling price or volume needed to achieve any target profit with this free online tool.
A target profit calculator works backwards from a desired profit amount. Instead of setting a price and seeing what profit results, you set the profit you want and the calculator tells you what price to charge or how many units to sell.
This is goal-based pricing: you start with your financial target and engineer your price around it.
Enter your fixed costs, variable cost per unit, and your desired profit amount. The calculator finds the selling price required to achieve that profit at a given quantity, or the quantity needed at a given price.
For example, if fixed costs are 50,000 rupees, variable cost is 200 per unit, and you want 30,000 rupees profit at 400 units, the required selling price is 325 rupees per unit.
Working backwards from a profit target keeps you focused on what matters: earning enough to grow the business. Many businesses price reactively based on competitor prices without knowing whether those prices actually deliver the profit they need.
Setting a profit target first forces you to check whether your market pricing is financially viable.
Break-even is the point of zero profit. Target profit goes beyond break-even to include the desired profit amount. The target profit calculation adds your profit goal to fixed costs and divides by the contribution margin.
Use the break-even calculator on Tez Invoice to find the zero-profit baseline, then use this target profit calculator to plan for growth.
Freelancers can set a monthly income target and use this calculator to find the hourly or project rate needed to reach that income. Enter your monthly overhead (subscriptions, equipment, insurance) plus desired take-home pay, and calculate the rate needed based on available billable hours.
This makes rate-setting objective rather than emotional.
Tez Invoice is our free online invoice generator. No sign up. No watermark. Download clean PDF or JPEG invoices in seconds, right from your browser.
Common questions about Target Profit Calculator: Find the Price You Need to Hit Your Profit Goal on Tez Invoice.
It finds the selling price or sales volume needed to achieve a specific profit target based on your costs.
Target profit price equals (fixed costs plus target profit divided by quantity) plus variable cost per unit.
Yes. Free with no sign up.
Break-even is the point of zero profit. Target profit adds a desired profit amount above break-even.
Yes. Enter your monthly costs plus income target and calculate the rate needed based on available hours.
Yes. Fully responsive.
No. In-browser only.
You may need to reduce costs or adjust your profit target to a more realistic market-compatible level.
Increase selling price, increase volume, or reduce costs. Usually a combination of all three is most effective.
Use the free Invoice Generator on Tez Invoice.