Free online calculator
Target Profit Units Calculator
Estimate the whole units needed to cover fixed costs and achieve a desired profit. Includes a worked example, formula and practical FAQs.
Formula: Required units = (fixed costs + target profit) ÷ (price − variable cost)
How to use the Target Profit Units Calculator
Estimate the whole units needed to cover fixed costs and achieve a desired profit. Enter all totals for one period and unit-level price and variable cost.
Formula
Required units = round up((fixed costs + target profit) ÷ (price − variable cost)).
Worked example
$1,000 fixed costs and $500 target profit, with $30 price and $18 variable cost, require 1,500 ÷ 12 = 125 units and $3,750 revenue.
Interpretation and limitations
Unit price must exceed variable cost. The target is profit under the costs modelled; taxes, financing or overhead omitted from those costs remain outside the result.
Target Profit Units questions
What if the target profit is zero?
The calculation becomes the break-even unit calculation.
Why might actual required units differ?
Discounts, changes in variable costs, product mix and step increases in fixed costs can change contribution as volume grows.
Continue your calculation
For the next step, use the Break-Even Units Calculator or the Break-Even Revenue Calculator. Review each tool’s input definitions before carrying a result into another calculation.
Frequently asked questions
Is this calculator free?
Yes. It runs in your browser and does not require an account.
How should I use the result?
Use the result as a planning estimate and verify business-critical decisions against your source records.