Why divide by margin?

Only your gross margin is left to cover fixed costs and profit, so each £1 of target needs £1/margin of sales.

No — it's a free illustration. Your actual Creditcorp offer depends on an assessment of your company.

Profit target revenue calculator — Calculators

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Results are illustrative, not a quote or credit decision.

How to interpret the result

The figure this calculator returns is the turnover a business would need to generate at its stated gross margin to cover both fixed overheads and the profit goal entered. Treat it as a floor rather than a target to aim exactly at — most limited companies build in headroom above the calculated figure, since real trading rarely delivers a perfectly even margin across every month or every product line.

It is also worth reading the result alongside how achievable that revenue actually is given current capacity, pipeline and market conditions. A number that looks tidy on screen can still be unrealistic if it implies a step-change in sales volume, headcount or production capacity that the business has not yet planned for. The calculator tells you what revenue is needed; it does not tell you whether reaching it is realistic within the timeframe in mind.

Limitations and good practice

This is a single-period, single-margin model. It assumes fixed costs stay fixed and gross margin stays constant across the whole revenue range, which is rarely exactly true — margin often compresses as a company scales up production or takes on discounted volume, and fixed costs can step upward once capacity limits are reached (a new hire, a bigger premises, more equipment). Directors should sense-check the output against their own management accounts rather than treat it as a forecast.

Good practice is to rerun the calculation with a slightly lower margin and a slightly higher fixed-cost figure to see how sensitive the required turnover is to those assumptions — if the revenue figure moves a lot, the plan behind it deserves more scrutiny before being relied on. This calculator sits alongside the net profit margin calculator and the revenue growth projection calculator, which are useful for testing those assumptions from different angles.