Calculate contribution margin per unit, contribution margin ratio, total contribution margin, break-even units, profit, and target-profit sales. Use this calculator to see how much each sale contributes toward fixed costs and profit.
Contribution margin per unit:
Enter selling price and variable cost per unit to calculate how much each unit contributes toward fixed costs and profit.
Contribution margin ratio:
Calculate contribution margin as a percentage of selling price.
Total contribution margin:
Multiply contribution margin per unit by units sold.
Target profit sales:
Enter fixed costs and target profit to calculate the units and revenue needed to reach that goal.
A contribution margin calculator helps with pricing, break-even analysis, product profitability, sales planning, cost control, and target-profit forecasting.
It can show whether each sale contributes enough to cover fixed costs and eventually create profit.
Your result shows contribution margin per unit, contribution margin ratio, total contribution margin, break-even units, profit, target-profit units, and target-profit revenue. A higher contribution margin means each sale contributes more toward covering fixed costs and profit.
Contribution margin is the amount left from each sale after variable costs. It contributes toward fixed costs and then profit.
Subtract variable cost per unit from selling price per unit.
Contribution margin ratio is contribution margin divided by selling price, shown as a percentage.
It helps determine break-even point, pricing strength, product profitability, and how much sales volume is needed to reach profit goals.