Enter the target profit margin (%) and the price of one unit ($) into the calculator to determine the Desired Profit.
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Desired Profit Formula
The following formula is used to calculate the Desired Profit.
DP = TPM/100 * UP
- Where DP is the Desired Profit ($)
- TPM is the target profit margin (%)
- UP is the price of one unit ($)
How to Calculate Desired Profit?
The following example problems outline how to calculate Desired Profit.
Example Problem #1:
- First, determine the target profit margin (%). In this example, the target profit margin (%) is given as 40.
- Next, determine the price of one unit ($). For this problem, the price of one unit ($) is given as 200.
- Finally, calculate the Desired Profit using the equation above:
DP = TPM/100 * UP
The values given above are inserted into the equation below:
DP = 40/100 * 200 = 80 ($)
Example Problem #2:
The variables needed for this problem are provided below:
target profit margin (%) = 35
price of one unit ($) = 150
Entering these values and solving gives:
DP = 35/100 * 150 = 52.5 ($)
