Contribution Margin Calculator
Calculate and analyze your contribution margin to understand product profitability and make informed pricing decisions. This tool helps you determine how much revenue contributes to covering fixed costs and generating profit.
How to Use
- Enter your total sales revenue and units sold
- Add variable costs (costs that change with production)
- Add fixed costs (costs that remain constant)
- Click Calculate to view the analysis
Understanding the Results
- Contribution Margin: The amount of revenue available to cover fixed costs and generate profit
- Contribution Margin Ratio: The percentage of revenue that contributes to fixed costs and profit
- Break-even Point: The sales level at which total revenue equals total costs
- Operating Income: The profit after all costs are deducted