Set a monthly net profit goal and see exactly how many sales you need to reach it.
Working backwards from a goal
Required gross profit = your target net profit + monthly expenses. Dividing that by your average profit per sale gives the sales you need each month, which is then spread across working days and hours.
Gross and net
Profit per sale is before fixed expenses, so the goal is only reached once expenses are covered as well. That is why the gross profit needed is larger than the net goal.
Frequently asked questions
What is profit per sale?
The sale price minus the direct cost of that sale, before your fixed monthly expenses.
Why are sales rounded up?
You cannot make part of a sale, so rounding up makes sure the goal is actually met.
Does this include tax?
No. Taxes depend on your location and structure, so add them to your expenses if you want to plan for them.