Revenue left after variable costs per unit. The Contribution Margin Calculator takes selling price per unit, variable cost per unit, units sold, fixed costs (optional, for profit) and returns contribution margin per unit plus contribution margin ratio, total contribution margin, profit after fixed costs. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Margins tell you where the money goes between revenue and profit. Track each margin over time and against similar businesses; a falling margin while revenue grows is the signal to investigate. Use the worked example below to check the maths against your own figures.
How the Contribution Margin Calculator works
Contribution margin is what each sale contributes towards fixed costs and then profit. It drives break-even analysis and tells you which products deserve the sales effort.
Worked example
With the example values (selling price per unit of $100, variable cost per unit of $60, units sold of 1000, fixed costs (optional, for profit) of $30,000), the contribution margin per unit is $40.00; contribution margin ratio 40%, total contribution margin $40,000.00, profit after fixed costs $10,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Related Calculators
Frequently Asked Questions
How is contribution margin per unit calculated?
contribution margin = price − variable cost per unit; ratio = contribution margin ÷ price.
Which figures do I need?
Selling price per unit, variable cost per unit, units sold, fixed costs (optional, for profit). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good margin?
It depends on the industry: grocery and distribution run on low single-digit net margins, software and services on 20% or more. Compare with similar businesses and watch your own trend.
