Contribution Margin Calculator
Find the contribution margin per unit in dollars and percent.
How much each sale contributes
Contribution margin is what remains from a sale after its variable costs, before fixed costs and profit. It is the number behind break-even analysis and smart pricing, because it shows what each unit really adds.
A product priced at 50 with 20 of variable cost has a contribution margin of 30 per unit, or 60%. That 60% of every sale is available to cover rent, salaries, and profit — the higher it is, the more room you have.
Clear and private
It subtracts variable cost from price and computes the ratio in your browser, so nothing you enter is uploaded.
Frequently Asked Questions
What is contribution margin?
The money left from each sale after variable costs, which goes toward covering fixed costs and profit. It is price minus variable cost per unit.
Why does it matter?
It shows how much each sale actually contributes and is the basis for break-even and pricing decisions.
What is the ratio?
Contribution margin divided by price, as a percent — the share of each dollar of revenue that is not eaten by variable cost.
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