Sales Target Calculator
Calculate the number of sales and revenue required to achieve your desired profit target. Perfect for business planning, budgeting and setting realistic sales goals.
Business Numbers
Enter your target profit, selling price, variable cost and fixed costs.
Ready to calculate?
Enter your business numbers above to calculate how many sales you need to reach your target profit.
Understanding Sales Targets
Setting a sales target helps you understand exactly how much you need to sell to achieve your desired profit. Instead of guessing, you can make business decisions based on real numbers.
This calculator uses your target profit, selling price, variable costs and fixed costs to determine the sales volume required to achieve your business goals.
Example Calculation
Sales Target Formula
Divide your desired profit plus fixed costs by the contribution margin per unit.
Why Sales Targets Matter
Without a sales target, it is difficult to know whether your business is moving in the right direction. A clear numerical goal allows you to measure sales performance, evaluate marketing efforts, and identify areas that need improvement.
Working backward from your desired profit helps you determine exactly how many units you need to sell. You can also see how pricing changes or cost reductions affect your business goals before making important decisions.
Frequently Asked Questions
What is a sales target?
A sales target is the amount of revenue or number of units you need to sell to achieve your desired profit.
How are the required units calculated?
They are calculated by dividing your target profit plus fixed costs by the contribution margin per unit.
What is contribution margin?
Contribution margin is the amount remaining after subtracting variable costs from your selling price.
Will changing my selling price affect the result?
Yes. Increasing your selling price generally reduces the number of units required to reach your target profit.
Can service businesses use this calculator?
Absolutely. It works for products, services, consultants, freelancers, and online businesses.
How often should I review my sales targets?
Review them monthly or whenever your pricing, costs, or business goals change.