The Contribution Margin Calculator works out your contribution margin per unit, along with 1 related figure in an instant. Enter selling price per unit and variable cost per unit and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
Enter the selling price per unit.
Enter the variable cost per unit.
Read off your contribution margin per unit, together with contribution margin ratio — the calculator updates automatically, with no button to press.
Formula
The Contribution Margin Calculator uses the formula:
Contribution margin per unit = Selling price per unit - Variable cost per unit
Worked example
For example, with selling price per unit of ₹500 and variable cost per unit of ₹300, the contribution margin per unit is ₹200.00.
Inputs used
Selling price per unit
₹500
Variable cost per unit
₹300
Results
Contribution margin per unit
₹200.00
Contribution margin ratio
40.00%
Results are estimates for educational use, not professional advice.
Key terms explained
Contribution margin
Selling price minus variable cost per unit — what each sale contributes to fixed costs and profit.
Ratio
A comparison of two quantities showing how many times one contains the other.
Frequently asked questions
It is the selling price minus the variable cost per unit — the amount each sale contributes toward fixed costs and profit. A 500 price with 300 variable cost gives 200.
It is the contribution margin as a percentage of price. For 200 on a 500 price, the ratio is 40%.
It shows how much each sale helps cover fixed costs and is the basis for break-even analysis and pricing decisions.
Dividing total fixed costs by the contribution margin per unit gives the number of units you must sell to break even.
The Contribution Margin Calculator uses the formula: Contribution margin per unit = Selling price per unit - Variable cost per unit. For example, with selling price per unit of ₹500 and variable cost per unit of ₹300, the contribution margin per unit is ₹200.00.
Enter the selling price per unit. Enter the variable cost per unit. Read off your contribution margin per unit, together with contribution margin ratio — the calculator updates automatically, with no button to press.
Margin and markup are easy to confuse but mean very different things — and mixing them up can quietly destroy your pricing. Here's how each works, how to convert between them, and how to price for profit.
Reference table of contribution margin per unit for Contribution Margin across a range of selling price per unit values — exact, engine-computed figures you can read off at a glance.