Break-Even With Target Profit Calculator
Find how many units and how much revenue you must sell to cover fixed costs and hit a specific profit target.
How it works
Contribution = price − variable cost · Units for target = (fixed costs + target profit) ÷ contribution · Revenue = units × price
Standard break-even finds the volume that yields zero profit. This version treats a target profit as an extra fixed amount to cover, so you divide (fixed costs + target profit) by the per-unit contribution margin. The result is the sales volume that not only covers all costs but delivers the profit you are aiming for — the number a real plan actually needs.
Worked example
With $5,000 fixed costs, a $20 price and $12 variable cost, each unit contributes $8. Plain break-even is 625 units. To also earn $3,000 profit, you need (5,000 + 3,000) ÷ 8 = 1,000 units, or $20,000 in revenue.
Frequently asked questions
How does a profit target change break-even?
You simply add the target profit to fixed costs before dividing by contribution margin. The profit behaves like an additional cost you must cover, so it raises the required volume above the zero-profit break-even point.
Why round units up?
You cannot sell a fraction of a unit and still reach the target, so the required volume is rounded up to the next whole unit. Selling that whole number slightly overshoots the exact target, which is the safe side to be on.
What if price is below variable cost?
Then contribution margin is zero or negative and no volume can ever cover fixed costs, let alone a profit target — every sale loses money. This calculator flags that case rather than returning an impossible number.
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Educational estimate, not financial advice.