Profit Goal Calculator
Tax comes off the profit.
Revenue required
$1,737,823
29,963 orders a year
Tax comes off the profit, so a $250,000 take-home goal needs $308,642 pre-tax. Planning against the after-tax figure understates the revenue requirement by $133,277.
How the Profit Goal Calculator works
A take-home profit goal needs a larger pre-tax figure, and planning against the after-tax number understates the revenue requirement by a meaningful margin. That gap is discovered when the tax bill arrives rather than when the plan is made.
Also known as: sales needed for target profit · profit target calculator · revenue required for profit goal
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How much revenue do I need for a profit target?
Pre-tax profit plus fixed costs, divided by contribution margin. The pre-tax step is where most plans go wrong.
Why gross up for tax?
Because tax is assessed on profit, so a £250,000 take-home goal at 19% needs £308,642 pre-tax. Planning on the smaller figure leaves you short by the tax.
Does the order of operations matter?
Yes, tax applies to profit after fixed costs, so gross up the profit target first and then add fixed costs before dividing by margin.
What if the revenue required is unreachable?
Then margin or fixed costs have to change. A profit goal that requires tripling revenue is a decision about the cost base disguised as a sales target.