Accounting Share · Break-even & decisions

After-Tax Target Profit Sales Calculator

Convert an after-tax profit goal into a simplified before-tax target, then calculate the whole units needed to earn it.

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03 / Understand the method

Formula and method

Before-tax target = After-tax profit ÷ (1 − Tax rate); Units = (Fixed cost + Before-tax target) ÷ Contribution

Convert an after-tax profit goal into a simplified before-tax target, then calculate the whole units needed to earn it.

How to use this calculator

  1. Collect the figures for the same entity, currency and reporting period.
  2. Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
  3. Choose Calculate, inspect the breakdown and compare the result with your assumptions.
  4. Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.

Inputs at a glance

  • Fixed costs: A nonnegative numeric input in the units specified by the label.
  • Desired after-tax profit: A nonnegative numeric input in the units specified by the label.
  • Assumed income-tax rate (%): A percentage number rather than a decimal fraction.
  • Contribution per unit: A nonnegative numeric input in the units specified by the label.

Worked example

Follow one calculation.

Fixed costs
12000
Desired after-tax profit
6000
Assumed income-tax rate (%)
25
Contribution per unit
20
Calculated result
1,000 units

Load this example in the interactive form to inspect the intermediate amounts.

Assumptions and interpretation

Assumes one proportional tax rate applies to positive profit. Actual taxable income, loss relief, progressive rates and deferred taxes are outside this model.

The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.

Questions about this tool

What does the after-tax target profit sales calculation measure?

Convert an after-tax profit goal into a simplified before-tax target, then calculate the whole units needed to earn it.

Which assumptions can change the result?

Assumes one proportional tax rate applies to positive profit. Actual taxable income, loss relief, progressive rates and deferred taxes are outside this model.

Why can displayed totals differ slightly from my spreadsheet?

Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.

Reference and further learning

Cost-volume-profit study reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.

Look up an accounting term · Practise with accounting questions

Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.

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