Enter the retail price (\$), the number of units, and the fixed costs plus variable costs (\$) into the calculator to determine the Cost Volume Profit.

Cost Volume Profit Formula

The following formula is used to calculate the Cost Volume Profit.

CVP = RP * U – TC

• Where CVP is the Cost Volume Profit (\$)
• RP is the retail price (\$)
• U is the number of units
• TC is the fixed costs plus variable costs (\$)

How to Calculate Cost Volume Profit?

The following example problems outline how to calculate Cost Volume Profit.

Example Problem #1

1. First, determine the retail price (\$). In this example, the retail price (\$) is given as 400 .
2. Next, determine the number of units. For this problem, the number of units is given as  20 .
3. Next, determine the fixed costs plus variable costs (\$). In this case, the fixed costs plus variable costs (\$) is found to be 300.
4. Finally, calculate the Cost Volume Profit using the formula above:

CVP = RP * U – TC

Inserting the values from above yields:

CVP = 400 * 20 – 300 = 7700 (\$)

Example Problem #2

The variables needed for this problem are provided below:

retail price (\$) = 50

number of units = 20

fixed costs plus variable costs (\$) = 30

Entering these values and solving gives:

CVP = 50 * 20 – 30 = 970 (\$)