Contribution Margin Calculator
Find how much each unit sold contributes towards fixed costs and profit after variable costs. Enter price per unit and variable cost per unit to see…
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Find how much each unit sold contributes towards fixed costs and profit after variable costs. Enter price per unit and variable cost per unit to see contribution margin per unit and contribution margin ratio when you calculate.
Worked example
Example calculated from the starting values. Enter your own values and press Calculate to get your result.
With the default inputs (price per unit = 40, variable cost per unit = 24), the results are: contribution margin per unit 16.00; contribution margin ratio 40.0 %.
Quick reference: price per unit vs result
Reference table based on the example values; it is not your calculation result.
| Price per unit | Contribution margin per unit | Contribution margin ratio |
|---|---|---|
| 20 | -4.00 | -20.0 % |
| 40 | 16.00 | 40.0 % |
| 80 | 56.00 | 70.0 % |
| 200 | 176.00 | 88.0 % |
| 400 | 376.00 | 94.0 % |
| 800 | 776.00 | 97.0 % |
Frequently asked questions
What formula does this calculator use?
Contribution margin per unit = price-var; Contribution margin ratio = (price-var) ÷ price × 100. Variables: price = price per unit, var = variable cost per unit.
What do I need to enter?
You need price per unit, variable cost per unit. Results update as you type.
What is an example result?
With the default inputs (price per unit = 40, variable cost per unit = 24), the results are: contribution margin per unit 16.00; contribution margin ratio 40.0 %.
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