Target Profit Units Calculator
Treat the amount to cover as fixed costs plus the profit you want, and the same division tells you the volume. At 15,000 a unit with 6,000 of variable cost the contribution is 9,000; 3,000,000 of fixed costs plus 1,500,000 of profit is 4,500,000, which over 9,000 comes to 500 units. Set the profit to zero, or use the break-even units page, if all you want is the level where you stop losing money.
Your numbers
Units for target profit
500
Break-even units
334
Contribution each
9,000
Formula
Units for target profit = (Fixed costs + Target profit) ÷ (Price − Variable cost each)
Where you draw the fixed/variable line moves the answer. Rent and salaries that run whether you sell or not are fixed; materials, payment fees and delivery that only appear on a sale are variable. File payment fees as fixed and the units you need come out too low.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Fixed costsMoney that goes out whether you sell or not — rent and salaries live here. | 3,000,000 | 0 and up |
| PriceThe amount being charged. Decide first whether it is before or after tax. | 15,000 | 0 and up |
| Variable cost eachCost that only appears when one more unit sells — materials, packaging, payment fees. | 6,000 | 0 and up |
| Target profitWhat you want left after fixed costs are covered; zero just means break even. | 1,500,000 | 0 and up |
Step by step
Quick reference table
Results when only Fixed costs changes and everything else stays put.
| Fixed costs | Units for target profit | Break-even units | Contribution each |
|---|---|---|---|
| 1,500,000 | 334 | 167 | 9,000 |
| 2,250,000 | 417 | 250 | 9,000 |
| 3,000,000 | 500 | 334 | 9,000 |
| 4,500,000 | 667 | 500 | 9,000 |
| 6,000,000 | 834 | 667 | 9,000 |
What each result means
| Result | At default values |
|---|---|
| Units for target profitUnits needed to cover fixed costs and leave the target profit on top. | 500 |
| Break-even unitsThe quantity that exactly covers fixed costs; one short and you are in the red. | 334 |
| Contribution eachWhat one more sale leaves in the business — this is what pays down fixed costs. | 9,000 |
Common mistakes
Where you draw the fixed/variable line moves the answer. Rent and salaries that run whether you sell or not are fixed; materials, payment fees and delivery that only appear on a sale are variable. File payment fees as fixed and the units you need come out too low.
Glossary
- Fixed costs
- Money that goes out whether you sell or not — rent and salaries live here.
- Price
- The amount being charged. Decide first whether it is before or after tax.
- Variable cost each
- Cost that only appears when one more unit sells — materials, packaging, payment fees.
- Target profit
- What you want left after fixed costs are covered; zero just means break even.
- Units for target profit
- Units needed to cover fixed costs and leave the target profit on top.
- Break-even units
- The quantity that exactly covers fixed costs; one short and you are in the red.
- Contribution each
- What one more sale leaves in the business — this is what pays down fixed costs.
Frequently asked questions
Q. How is Target Profit Units Calculator calculated?
Units for target profit = (Fixed costs + Target profit) ÷ (Price − Variable cost each) — Treat the amount to cover as fixed costs plus the profit you want, and the same division tells you the volume. At 15,000 a unit with 6,000 of variable cost the contribution is 9,000; 3,000,000 of fixed costs plus 1,500,000 of profit is 4,500,000, which over 9,000 comes to 500 units. Set the profit to zero, or use the break-even units page, if all you want is the level where you stop losing money.
Q. Can you walk through an example?
With Fixed costs 3,000,000, Price 15,000, Variable cost each 6,000, Target profit 1,500,000, the answer is Units for target profit 500.
Q. What do I need to enter?
Enter Fixed costs, Price, Variable cost each, Target profit. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Fixed costs moves the answer to Fixed costs 1,500,000 → Units for target profit 334 and Fixed costs 6,000,000 → Units for target profit 834. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Where you draw the fixed/variable line moves the answer. Rent and salaries that run whether you sell or not are fixed; materials, payment fees and delivery that only appear on a sale are variable. File payment fees as fixed and the units you need come out too low.
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Tax rates and interest conventions differ by country and product — check your contract for real transactions.