Contribution Margin Calculator
Calculate contribution margin, contribution margin ratio and profit per unit.
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CONTRIBUTION MARGIN PER UNIT
$0.00
Contribution Margin Ratio
0.00%
Selling Price
$0.00
Variable Cost
$0.00
Total Contribution Margin
$0.00
Estimated Profit
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Contribution Margin Formula
Contribution Margin = Selling Price − Variable Cost
Contribution Margin Ratio = Contribution Margin ÷ Selling Price × 100
How to Use the Contribution Margin Calculator
Enter sales revenue and variable costs to calculate contribution margin and contribution margin ratio.
Practical Example
If revenue is USD 100,000 and variable costs are USD 60,000, contribution margin is USD 40,000 and the ratio is 40%.
Factors That Affect the Result
Accurate classification of fixed versus variable costs is essential. Discounts, returns and mixed costs can change the result.
Frequently Asked Questions
What does contribution margin cover?
It contributes toward fixed costs and profit.
Is it the same as gross profit?
No.
Can the ratio be negative?
Yes, if variable costs exceed revenue.