Calculator

Contribution Margin Calculator

Measure how much each sale contributes toward covering fixed costs and then profit. This is the clean bridge between selling price, variable cost, and break-even logic.

See contribution per unit clearly
Measure contribution margin ratio on revenue
Check whether volume covers fixed costs

Calculate contribution margin

Enter the selling price per unit, variable cost per unit, expected units sold, and optional fixed costs. The calculator shows what each sale contributes and whether the batch clears the fixed-cost burden.

Three common unit-economics setups.

Formula

How to calculate contribution margin

Contribution per unit = Selling price per unit - Variable cost per unit

Contribution margin ratio = Contribution per unit / Selling price per unit × 100

If each unit sells for $39 and variable cost is $14, each sale contributes $25 toward fixed costs and profit. Divide $25 by $39 and the contribution margin ratio is 64.10%.

Where it helps

Testing whether an offer supports fixed overhead fast enough.
Comparing products or packages with different variable cost structures.
Understanding why break-even moves when price or cost changes.

Useful next step

Once contribution margin is clear, check how many units are needed to break even, or work backwards into price if the economics still feel too thin.