Contribution Margin Calculator
FinanceCalculate your contribution margin and contribution margin ratio from your selling price, variable cost, and unit volume.
Contribution Margin
Revenue remaining after variable costs, available to cover fixed costs and generate profit.
Contribution Margin Ratio
33.33%
Operating Income (After Fixed Costs)
$200,000
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Odeh Ahwal0people find this calculator helpful
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Odeh Ahwal0people find this calculator helpful
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Saved
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Frequently Asked Questions
How is Contribution Margin calculated?
Contribution Margin = (Selling Price per Unit - Variable Cost per Unit) x Number of Units Sold. It is the revenue left over after variable costs, before fixed costs are subtracted.
How is Contribution Margin different from gross profit?
Gross profit subtracts all cost of goods sold, which can include some fixed manufacturing costs. Contribution margin subtracts only variable costs, making it a better tool for break-even and what-if volume analysis.
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