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Sales Target Calculator
Compute the units and revenue needed to hit a profit target, from selling price, variable cost, and monthly fixed cost. Free.
How it's computed
Contribution margin = price − variable cost. Target units = (fixed cost + target profit) ÷ contribution margin.
Target to reach
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Understanding sales targets
Contribution margin
The gap between selling price and variable cost per unit. It's each unit's contribution to cover fixed cost and generate profit.
Units needed
Units = (fixed cost + target profit) ÷ contribution margin. The higher the contribution margin, the fewer units you must sell.
Target revenue
Revenue needed = units × selling price. It gives a concrete picture of how much sales your team must chase each month.
FAQ
Frequently asked questions
How do I calculate a sales target?
Compute contribution margin (price − variable cost), then divide (fixed cost + target profit) by it for the units. Multiply units by price for target revenue.
What is contribution margin?
What remains of the selling price after variable cost per unit. E.g. price Rp50,000, variable Rp30,000 → contribution margin Rp20,000 per unit to cover fixed cost and profit.
What if the target isn't met?
You can raise the price, cut variable/fixed cost, or increase volume. Change the numbers to see each change's impact on the required units.
How is a sales target different from BEP?
BEP is break-even (zero profit) — covering costs only. A sales target adds a profit goal above BEP, so more units are needed.
Does this include tax?
It uses business figures (price, cost). For an after-tax profit target, adjust the target profit to account for your estimated business tax.
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