Contribution Margin Calculator

Our user-friendly contribution margin calculator takes the guesswork out of the equation. Simply input:

1. Selling price per unit: The price you charge for your product or service.
2. Number of units: The quantity you’ve sold.
3. Variable costs per unit: The costs directly associated with producing or delivering each unit.

Absolutely! By adjusting the “Number of Units” input, you can see how changes in sales volume directly affect your contribution margin. This helps you understand the potential impact of sales campaigns or seasonal fluctuations.

The calculator outputs the contribution margin in both absolute units (e.g., $100) and as a percentage of the selling price (e.g., 40%). This gives you a broader perspective on profitability and allows for easy comparison.

Yes! By entering their specific details, you can use the calculator to compare contribution margins across different products. Similarly, you can compare margins for different time periods by adjusting the “Number of Units” and “Variable Costs” based on your historical data.

Our calculator is designed for both small businesses and large corporations. Whether you’re selling handmade crafts or managing a global manufacturing chain, the principles of contribution margin remain the same. Simply input your relevant data, and the calculator will do the rest.

To calculate your contribution margin, you’ll need:
Selling price per unit: The price you charge for your product or service.
Number of units: The quantity you’ve sold.
Variable costs per unit: The costs directly associated with producing or delivering each unit.
Remember, the more accurate your inputs, the more reliable your contribution margin insights will be.

Contribution Margin = (Selling Price per Unit × Number of Units) – (Variable Costs per Unit × Number of Units)

Yes! Here is a simple example:
Input:
Selling price per unit: $25
Number of units: 10
Variable costs per unit: $15
Number of units: 10

Output:
Contribution Margin = ($25 x 10) – ($15 x 10)
Contribution Margin = $250 – $150
Contribution Margin = $100

Voila! With each unit sold, you contribute $100 towards your profit and fixed costs.