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 ($)