Contribution Margin Calculator

Measure profit contribution per unit and optional break-even units.

How we calculate this

Subtract variable cost from selling price to get contribution margin per unit.
Divide contribution margin per unit by selling price to get the contribution margin ratio.
If fixed costs are entered, divide fixed costs by contribution margin per unit to estimate break-even units.

Contribution margin per unit Selling price per unit - Variable cost per unit

Contribution margin ratio (Contribution margin per unit / Selling price per unit) × 100

Break-even units Fixed costs ÷ Contribution margin per unit

If you sell a unit for $50 and the variable cost is $30, the contribution margin per unit is the amount left to cover fixed costs and profit.

What does contribution margin tell me?

It shows how much each sale contributes toward fixed costs and profit after variable cost is covered.

What if selling price is equal to variable cost?

That means each sale contributes zero toward fixed costs or profit, so break-even cannot be reached.

Do I need fixed costs to use this calculator?

No. Fixed costs are optional and only needed if you also want break-even units.

These tools are designed to make the math visible, keep assumptions clear, and give you a practical planning result you can review quickly.

This calculator is for educational and planning purposes only. It does not replace professional financial, tax, accounting, or business advice.