/ /Required Sales Calculator
Required Sales Calculator
Convert any profit goal into required unit sales: fixed costs plus target profit divided by per-unit contribution, with revenue and a months-to-goal timeline.
Required Sales Inputs
Target Profit ($)
Fixed Costs ($)
Unit Price ($)
Unit Cost ($)
Current Monthly Units
Required Sales
Contribution / Unit$20.00
Required Units2000 units
Required Revenue$100000.00
Time at Current Pace1.7 months
Sales verdict: Sell 2000 units ($100000.00) at $20.00 contribution each to clear fixed costs and bank $25000.00. At 1200/month that takes 1.7 months — raise contribution or velocity to shorten it.
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Authoritative References
Frequently Asked Questions
How do you calculate required sales for a profit target?
Required Units = (Fixed Costs + Target Profit) / (Unit Price - Unit Cost). With $15,000 fixed, $25,000 target, and $20 contribution, you need 2,000 units.
What is unit contribution?
Unit Price minus Unit Cost (all variable per-unit deductions). It is the profit each unit contributes toward fixed costs and the target before volume multiplies it.
How does price affect required sales?
Sharply: raising contribution from $20 to $25 cuts required units 20%. Small price increases usually beat big volume pushes for hitting profit goals.
Should required sales include taxes?
For operating targets, use pre-tax contribution and set the profit goal pre-tax for clarity. Convert to post-tax only for final distributions planning.
How do I track progress to a sales goal?
Divide required units by current monthly pace for a timeline, then review weekly sell-through. If pace slips two weeks running, adjust price, promotion, or ad spend immediately.