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Desired Profit Calculator – Hit Your Target Revenue Goal

Desired Profit Calculator

Desired Profit Calculator

Calculate the required revenue to achieve your target profit based on costs and expenses

Profit & Costs
Pricing & Volume
Required Revenue & Sales
Required Revenue
$0
$
Total sales needed to hit profit goal
Units to Sell
0
units
Number of products/services needed
Gross Margin
0
%
Profitability after direct costs
0% Margin
Key Metrics
Total Costs
$0
$
Fixed + variable costs
Profit After Tax
$0
$
Net profit after taxes
Markup Needed
0
%
Markup on cost to hit target
Profit Breakdown by Period
Daily Profit
$0
$ per day
Profit needed each day
Weekly Profit
$0
$ per week
Profit needed each week
Monthly Profit
$0
$ per month
Profit needed each month
Quarterly Profit
$0
$ per quarter
Profit needed each quarter
Yearly Profit
$0
$ per year
Annual profit target

Cost Breakdown



Desired Profit Calculator helps businesses determine the required revenue needed to achieve a specific profit target after accounting for all costs. This tool is essential for:

  • Setting sales targets

  • Pricing strategies

  • Financial planning

  • Budgeting and forecasting


Key Components of a Desired Profit Calculator

1. Input Fields

The calculator should include:

Profit & Cost Inputs

  • Desired Profit Amount (The target profit you want to achieve)

  • Fixed Costs (Rent, salaries, utilities, insurance, etc.)

  • Variable Costs per Unit (Cost of Goods Sold - COGS)

  • Selling Price per Unit (Revenue per item/service)

Optional Inputs

  • Tax Rate (If calculating after-tax profit)

  • Commission/Discounts (If applicable)


Calculation Methods

1. Required Revenue to Achieve Desired Profit

Required Revenue=Fixed Costs+Desired Profit+(Variable Cost per Unit×Number of Units)

Alternatively, if you know the Contribution Margin (Selling Price - Variable Cost):

Required Sales (Units)=Fixed Costs+Desired ProfitContribution Margin per Unit

2. Break-Even Analysis (Zero Profit Scenario)

Break-Even Units=Fixed CostsSelling Price per UnitVariable Cost per Unit

3. After-Tax Profit Adjustment

If calculating net profit after taxes:

Pre-Tax Profit Needed=Desired Profit(1Tax Rate)

Then, recalculate required revenue using this adjusted profit figure.


Example Calculation

InputAmount ($)
Desired Profit (After Tax)$10,000
Fixed Costs$5,000
Variable Cost per Unit$15
Selling Price per Unit$40
Tax Rate20%

Step 1: Calculate Pre-Tax Profit Needed

Step 2: Determine Required Sales in Units

Contribution Margin per UnitRequired Units=

Step 3: Calculate Required Revenue

Verification:

  • Total Revenue: $28,000

  • Variable Costs: 700 × $15 = $10,500

  • Fixed Costs: $5,000

  • Pre-Tax Profit: $28,000 - $10,500 - $5,000 = $12,500

  • After-Tax Profit: $12,500 × (1 - 0.20) = $10,000 (Target Achieved)


Features of an Effective Desired Profit Calculator

✅ Multiple Calculation Modes (Pre-tax/After-tax, Unit/Revenue-based)
✅ Interactive Sliders (Adjust costs & profit targets dynamically)
✅ Graphical Output (Shows break-even point and profit zones)
✅ Scenario Analysis (Compare different pricing strategies)
✅ Exportable Reports (For financial presentations)


Benefits of Using This Calculator

✔ Goal-Oriented Planning – Sets clear revenue targets.
✔ Pricing Strategy Optimization – Tests how price changes impact profitability.
✔ Cost Control – Identifies cost reduction opportunities.
✔ Investor & Lender Ready – Provides data-backed financial projections.
✔ Time-Saving – Eliminates manual guesswork in profit planning.