Business
Profit margin
See profit, margin, and markup side by side.
Calculators / Business / Revenue for a profit target
Revenue for a profit target calculator
Find the sales revenue needed to earn a chosen gross profit.
On this page
Revenue required80,000
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How to calculate
Find the sales revenue needed to earn a chosen gross profit.
Revenue required = profit/(margin/100)
Worked example
Target gross profit: 20000; Gross margin (%): 25.
Revenue required: 80,000 .
Assumptions and limits
Yes if your input is consistently defined as a net margin and the target is net profit. Do not mix gross and net definitions.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Revenue multiplied by gross margin must equal the target gross profit. This is a gross-profit target before operating expenses.
When this tool is useful
Find the sales revenue needed to earn a chosen gross profit.
Understanding your inputs
| Input | What to enter |
|---|---|
| Target gross profit | Enter a number of at least 0 and no more than 1000000000000. |
| Gross margin (%) | Enter a number of at least 0.001 and no more than 100. |
Frequently asked questions
Can I use net margin instead?
Yes if your input is consistently defined as a net margin and the target is net profit. Do not mix gross and net definitions.