Contribution Margin Calculator
Calculate contribution margin per unit, contribution margin ratio, and total contribution margin.
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Your result
Contribution margin per unit
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Contribution margin ratio
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Total contribution margin
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Total revenue
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Total variable cost
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Enter your assumptions to see a short result summary.
How it works
- Contribution margin per unit is the amount remaining after variable cost is deducted from selling price.
- The contribution margin ratio expresses contribution margin as a percentage of selling price.
- Total contribution margin equals contribution margin per unit multiplied by units sold.
Contribution Margin per Unit = Selling Price − Variable Cost per Unit
Contribution Margin Ratio = Contribution Margin per Unit / Selling Price × 100
Frequently asked questions
What is contribution margin?
Contribution margin is the portion of sales remaining after variable costs that can contribute toward fixed costs and profit.
Is contribution margin the same as profit?
No. Fixed costs and other expenses still need to be covered before profit is determined.
What if variable cost is higher than selling price?
The contribution margin becomes negative, meaning each additional unit reduces overall contribution.
Disclaimer
This calculator provides simplified business estimates for general planning. Actual contribution analysis may require additional cost classifications, product mix assumptions, discounts, taxes, commissions, and accounting judgments.