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 ($)