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 ($) 

To calculate the cost volume profit, multiply the retail price by the number of units, then subtract 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 ($)