In this example, increasing period fixed costs from 8,000 to 8,800 changes the result from 60 sales to 64 sales. All other inputs stay the same.
Try this with your own numbersFormula and worked example
Required volume = ceiling((fixed costs + target profit) / unit contribution)
| Input | Example |
|---|---|
| Period fixed costs | 8,000 |
| Target operating profit | 4,000 |
| Revenue per translation job | 500 |
| Variable cost per translation job | 300 |
| Calculated result | 60 sales |
Choose reliable inputs
Include software licences, delivery time, revisions and ongoing support when costing a project. For this translation service calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one translation job.
- Translator time: include the portion belonging to this translation job or reporting period, and record where the value came from.
- Review: include the portion belonging to this translation job or reporting period, and record where the value came from.
- Formatting: include the portion belonging to this translation job or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
How many sales are needed beyond break-even?
The unit contribution must be positive. Check whether delivery capacity can support the resulting volume.
What if this input changes?
If period fixed costs rises by 10%, this example changes by 4 sales. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.