A clear result in a few inputs.
- Enter the requested values.Use consistent units and the real values for your scenario.
- Read the main result and breakdown.NumLuma recalculates immediately when an input changes.
- Check the formula and assumptions.Use the supporting context before making a real-world decision.
What this calculator does
A revenue goal can be estimated from a target profit when you assume a net profit margin. The calculation reverses the margin relationship: if a business keeps a given share of revenue as net profit, revenue must be large enough for that share to equal the target profit.
What to know before you use the result
- The result depends completely on the target margin remaining achievable at the higher revenue level.
- Margin should represent the same profit definition as the target profit.
- Real growth can change costs, pricing and margin, so this is a scenario model rather than a forecast.
Common mistakes to avoid
- Entering 20 instead of 0.20 in a manual formula without converting percent to decimal.
- Using gross margin with a net-profit target.
- Assuming costs scale perfectly with revenue.
Where this calculation is useful
Annual planningSales targetsScenario modelingBudget discussions
Related concepts
revenue targetsales goalprofit targetnet margin