Revenue & growth
Revenue Target Calculator
Convert a profit goal and contribution margin into the revenue that would produce that profit under those assumptions.
Decision: How much revenue do I need to hit this profit target?
This tool runs in your browser. FounderMage does not send the numbers you enter to our servers.
Result
Required revenue
Required revenue: $45,000.00
Required revenue of $45,000.00 is gross sales, not net profit and not cash flow. At 40% contribution margin it produces $18,000.00 of contribution, which equals fixed costs plus target profit ($12,000.00 + $6,000.00 = $18,000.00). No tax is calculated. This is not a forecast that the business will reach this revenue.
Contribution needed
Contribution needed: $18,000.00
Contribution recovered from gross revenue
Contribution recovered from gross revenue: $18,000.00
How to read the result
The revenue figure is the sales volume that matches the margin and profit you typed. It is not a forecast that you will reach it.
Calculated facts
Totals and thresholds come only from the values on this page. They describe the math, not what you should do.
Still a judgment call
Risk, timing, customers, and judgment stay outside the calculator. A stronger number can still be the wrong path.
Methodology
Contribution needed is fixed costs plus target profit. Required revenue is contribution needed ÷ (margin ÷ 100) when margin is positive.
Assumptions
- Contribution margin stays constant across the revenue you calculate.
- No taxes unless included in fixed costs.
Examples
40% margin
$12,000 fixed costs and $6,000 profit at 40% contribution margin requires $45,000 revenue.
How to use this tool
- Enter fixed costs, target profit, and contribution margin percent.
- Read required revenue and the contribution dollars needed.
Limitations
- Mix shifts that change margin are not modeled.
- Not financial advice.
Questions
- What is contribution margin here?
- The percent of each revenue dollar left after variable costs. Enter it as a percent, not a dollar.
- Why is revenue blank at 0% margin?
- If nothing is left after variable costs, no amount of revenue covers fixed costs or profit.