Contribution Margin Calculator

Calculate contribution margin, ratios, and break-even points for better pricing decisions

âœ“ Contribution margin âœ“ Break-even analysis âœ“ Profitability metrics

Selling Price per Unit ($)

Variable Cost per Unit ($)

Units Sold

Fixed Costs ($)

Material Cost per Unit ($)

Labor Cost per Unit ($)

Variable Overhead per Unit ($)

Other Variable Costs ($)

Calculate contribution margin to understand product profitability and make pricing decisions

Contribution Margin = Selling Price - Variable Costs

Variable Costs: Costs that change with production volume

Fixed Costs: Costs that remain constant

Break-even: Point where total revenue equals total costs

CM Ratio: Contribution margin as % of sales

How to Use

Set prices to maximize contribution margin per unit.

Focus on products with higher contribution margins.

Determine minimum sales needed to cover costs.