Contribution Margin Calculator

Your details

The revenue you receive for one unit before any costs.
Enter one combined variable cost, or break it into materials, labour, shipping and fees.
All costs that change with each unit: materials, direct labour, shipping, fees, commission.
Units you expect to sell in the period. Drives total contribution margin and profit.
Costs that do not change with volume: rent, salaries, insurance, software. Used for profit and break-even.
Work out how many units and how much revenue you need to hit a profit goal.
Currency
Contribution margin per unitHealthy margin
$20.00
Contribution margin ratio40%
Variable cost per unit$30.00
Total contribution margin$20,000.00
Total revenue$50,000.00
Total variable cost$30,000.00
Operating profit$8,000.00
Break-even units600
Break-even revenue$30,000.00

Each unit contributes 20 (40%).

  • Each unit contributes 20 (40% of price) toward fixed costs and profit after covering its variable cost.
  • You break even at 600 units, about 30,000 in revenue, where total contribution margin equals your fixed costs.
  • At 1,000 units you make 8,000 operating profit.

Next stepCompare the ratio across products to see which ones fund your overhead fastest.

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