Contribution Margin Calculator

Enter the selling price and variable cost per unit to calculate contribution margin.

Contribution Margin Calculator

Calculate contribution margin per unit and as a ratio — the amount each sale contributes toward covering fixed costs and profit.

This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.

Contribution margin shows how much each unit sold contributes toward covering fixed costs before turning a profit, and is the foundation of break-even analysis.

Example

  • With the default values shown above, this calculator returns: Contribution Margin per Unit ≈ USD 20.00; Contribution Margin Ratio ≈ 40.00.

Frequently Asked Questions

What is the formula?

Contribution Margin = Selling Price − Variable Cost (per unit). Contribution Margin Ratio = Contribution Margin ÷ Selling Price × 100.

How is this used?

Contribution margin is the basis for break-even analysis: fixed costs ÷ contribution margin per unit gives the number of units needed to break even.

Related Calculators

Gross Margin CalculatorCalculate gross profit and gross margin percentage from revenue and cost of goods sold.Break-Even Units CalculatorCalculates the number of units you need to sell to cover fixed costs, based on price and variable cost per unit.Profit Margin and Markup CalculatorCalculates profit, profit margin and markup percentage from a product's cost and selling price.
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