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 ($) To calculate the desired profit, multiply the target margin by the price of one unit. ## How to Calculate Desired Profit? The following example problems outline how to calculate Desired Profit. Example Problem #1: 1. First, determine the target profit margin (%). In this example, the target profit margin (%) is given as 40. 2. Next, determine the price of one unit ($). 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 ($) = 150 Entering these values and solving gives: DP = 35/100 * 150 = 52.5 ($)