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

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## 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**

- First, determine the retail price ($). In this example, the retail price ($) is given as 400 .
- Next, determine the number of units. For this problem, the number of units is given as 20 .
- Next, determine the fixed costs plus variable costs ($). In this case, the fixed costs plus variable costs ($) is found to be 300.
- 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** **($)