Contribution Margin Calculator
Enter the selling price and variable cost per unit to see your contribution per unit, the total contribution and the margin ratio — so you can check whether a product covers its fixed costs and starts earning profit.
Result
Enter values to see the result.
How to use
- Fill in the fields above with your own figures — results update live as you type.
- Contribution is selling price minus variable cost per unit. Total contribution must cover fixed costs before profit starts.
- Check the result box and adjust any rate or parameter to test other cases.
Note: Only costs that change with each unit belong in variable cost — rent and salaries are usually fixed.
Tips
- Only costs that change per unit go in variable cost — rent and salaries are fixed.
- A positive contribution per unit means each sale helps cover fixed costs.
- Compare the margin ratio across products to see which earns most per rupee of sales.
- Use the result to set break-even targets for the month.