Sales needed to hit a profit target. The Goal Seek Revenue Calculator takes profit target, fixed costs, contribution margin and returns revenue needed plus per month, break-even revenue (zero profit). Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Good business decisions come from putting numbers on the options before committing. Run the calculation with your best estimate, then again with a pessimistic one, and see whether the decision survives both. Use the worked example below to check the maths against your own figures.
How the Goal Seek Revenue Calculator works
Working backwards from the profit you want gives a sales target with a reason behind it. The contribution margin is revenue minus variable costs, as a share of revenue.
Worked example
With the example values (profit target of $100,000, fixed costs of $250,000, contribution margin of 40%), the revenue needed is $875,000.00; per month $72,916.67, break-even revenue (zero profit) $625,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is revenue needed calculated?
revenue needed = (profit target + fixed costs) ÷ contribution margin.
Which figures do I need?
Profit target, fixed costs, contribution margin. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How reliable is the result?
As reliable as the estimates you enter. Run the calculation with optimistic and pessimistic inputs to see the range of outcomes before deciding.
