Target Profit Calculator
Calculate revenue needed to achieve your target profit after tax. Free small business planning calculator for pricing, goal setting, and break-even analysis.
Inputs
Enter the minimum numbers needed to get a result.
Formula and example
Required revenue = Cost + Target profit / (1 - Tax rate %); Required margin = (Profit before tax / Required revenue) x 100
If you want $5,000 after tax, costs are $15,000, and tax rate is 20%, the required revenue is $21,250 and the required margin is 29.41%.
Methodology & assumptions
Last updated: 2026-06-12Calculation method
Works backward from an after-tax profit goal. Divides the target profit by (1 - tax rate) to find the pre-tax profit needed, then adds total costs to determine required revenue. Useful for setting annual revenue targets.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Uses a flat effective tax rate. Actual tax obligations depend on jurisdiction, business structure, deductions, and other factors. Use for planning, not for tax filing.
Input definitions
- Target profit (after tax): How much profit you want to keep after paying taxes.
- Total costs: All costs including materials, labor, overhead, and operating expenses.
- Tax rate on profit: Your effective income tax rate on business profit.
Frequently asked questions
What tax rate should I use?+
Use your effective tax rate — the percentage of profit that goes to taxes after deductions. For U.S. small businesses, 15-25% is common depending on business structure and income level.
What counts as total costs?+
Include all expenses: direct costs (materials, labor), operating expenses (rent, software, marketing), and any other costs needed to run the business for the period you're planning.
Can I use this for monthly targets?+
Yes. Divide your annual target profit and costs by 12, and use your annual effective tax rate. The calculation works for any time period as long as inputs are consistent.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.