Reverse Calculator

Revenue Needed for Your Profit Goal

To earn $10,000 a month in profit with a 25% margin and $8,000 of fixed costs, you need about $72,000 in revenue. Of that, $8,000 covers fixed costs, $10,000 is profit, and the rest is variable cost. Cut fixed costs or lift margin and the required revenue drops fast.

Results

Visualization

Cashbizly provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions. Tax-year figures (mileage, QBI, SEP, etc.) are labelled by year and should be verified at IRS.gov.

How It Works

Profit = Revenue x Margin% - Fixed. Solving for revenue: Revenue = (Target Profit + Fixed) / Margin%. The remaining revenue after profit and fixed costs is variable cost. This is the reverse of the standard break-even formula and is the right view when a profit goal is set first.

What Should You Do?

Scenario 1: a studio wanting $15k profit at 40% margin and $6k fixed needs $52.5k revenue. Scenario 2: raising margin from 25% to 35% on the same $18k goal cuts required revenue from $72k to $51.4k. Scenario 3: every $1k of fixed-cost reduction drops required revenue by $1k/margin.

Frequently Asked Questions

Why solve for revenue instead of break-even?

Break-even tells you the survival floor; the reverse tells you the sales bar for a specific profit goal, which is what planning and financing actually require.

What if my margin varies by product?

Use a blended (weighted-average) margin, or run the tool per product line. The formula assumes one contribution margin across the revenue base.

How do I raise contribution margin?

Raise price, lower per-unit cost, or shift mix toward higher-margin items. See Markup and Margin calculators for the mechanics.

Authoritative References

SBA — Break-Even Point — Formula: Fixed Costs / (Price - Variable Costs) = Break-Even Units.
Investopedia — Break-Even Analysis — Contribution margin and margin of safety.