Break-Even With Target Profit Calculator

About this calculator

Standard break-even analysis finds the sales level where revenue exactly covers costs with zero profit; this variant extends that logic to solve for the sales needed to hit a specific profit target instead. The formula is required sales = (fixed costs + target profit) ÷ contribution margin ratio, where the contribution margin ratio is the share of each sales dollar left over after variable costs to cover fixed costs and profit.

This is a core tool in cost-volume-profit (CVP) analysis, used by managerial accountants, financial planners, and business owners to set realistic sales goals — for example, figuring out how much revenue a product line needs to generate this quarter to both cover overhead and deliver a specific bottom-line number. This calculator takes your fixed costs, target profit, and contribution margin ratio and returns the required sales revenue.