Where do calculations run?

This tool runs in your browser for quick estimates. Use consistent units and verify critical figures independently.

Vendora

Small business calculator

Contribution Margin Calculator

See how much each unit contributes after variable costs: enter selling price and variable cost per unit, quantity sold, and fixed costs for the period. You get contribution margin per unit, total contribution, contribution margin ratio, and profit after fixed costs.

Inputs

Use one currency. Variable cost is direct cost that moves with each unit; fixed costs are the period total you want to compare against contribution.

Selling price per unit Price before allocating fixed costs.

Variable cost per unit Direct materials, labor, shipping per unit—your definition.

Number of units Whole units for this period.

Fixed costs Optional. Total fixed costs to subtract from total contribution (use 0 to skip).

Contribution margin Calculated after you click Calculate.

Profit generated Calculated after you click Calculate.

Results

Contribution margin per unit is price minus variable cost. Total contribution is that margin times quantity. Contribution margin ratio is margin per unit divided by price. Profit is total contribution minus fixed costs.

Total contribution margin —

Contribution margin per unit —

Contribution margin ratio —

Profit (after fixed costs) —

Example

You sell at $40 per unit, variable cost is $16, you sell 100 units, and fixed costs are $5,000. Contribution margin per unit is $24. Total contribution is $2,400. Contribution margin ratio is $24 ÷ $40 × 100 = 60%. Profit after fixed costs is $2,400 − $5,000 = −$2,600.

How it works

Contribution margin per unit = selling price per unit − variable cost per unit (must be positive for a meaningful ratio at a positive price). Total contribution margin = contribution margin per unit × quantity. Contribution margin ratio = contribution margin per unit ÷ selling price per unit × 100. Profit = total contribution margin − fixed costs. If price is zero, the ratio is not shown.