Required Sales Calculator
Set a target profit and find out exactly how many units you need to sell to reach it. Unlike a standard break-even calculator, this tool factors in your desired profit so you can plan for growth, not just survival.
How it's calculated
Contribution margin = Price per unit − Variable cost per unitRequired units = (Fixed costs + Target profit) ÷ Contribution marginRequired revenue = Required units × Price per unit
Frequently Asked Questions
- How is this different from a break-even calculator?
- A break-even calculator finds the point where profit is zero. This calculator lets you set a target profit above zero, so you can plan the sales volume needed to hit a specific financial goal rather than just covering costs.
- What if I have a negative contribution margin?
- If your variable cost per unit exceeds your selling price, each unit sold generates a loss. No amount of sales volume will achieve a profit — you need to raise your price or reduce variable costs.
- Can I use this for services as well as products?
- Yes. For service businesses, treat each billable hour or client engagement as a "unit". Variable costs would include direct labour, materials, or contractor fees per engagement.