Enter the target profit margin (%) and the price of one unit ($) into the calculator to determine the Desired Profit. 

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:

  1. First, determine the target profit margin (%). In this example, the target profit margin (%) is given as 40.
  2. Next, determine the price of one unit ($). For this problem, the price of one unit ($) is given as 200.
  3. 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 ($)