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Sales volume needed for a target profit calculator

Enter fixed costs for the period, the desired profit, the price per unit and the variable cost per unit. The calculator works out how many units need to be sold.

Result

Required sales volume, units

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Required sales volume = (fixed costs + target profit) ÷ (price − variable cost per unit). This is the same extension of the break-even point as the required revenue calculator, just expressed in units instead of money.

The contribution margin per unit (price minus variable cost) is what each unit sold adds toward covering fixed costs and profit. The higher that margin, the fewer units are needed for the same target profit.

If the contribution margin per unit isn't positive (price doesn't exceed variable cost), no sales volume will ever produce a profit — in that case the price needs to change or variable costs need to come down, not the volume.

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