Contribution Margin Calculator
Enter the selling price and the variable cost to see the contribution margin, the share of each sale that helps cover fixed costs.
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- No sign-up
Enter price and variable cost to see the contribution margin.
Worked example
With these example inputs:
- Price$50
- Variable costs$20
Contribution margin: 60.0%
- Profit$30.00
- Markup150.0%
Frequently asked questions
What is contribution margin?
It is the selling price minus the variable cost, as a share of the price. The remainder contributes to fixed costs and, once those are covered, to profit.
Why does it matter?
It shows how much each sale contributes toward fixed costs, which is central to break-even analysis and pricing decisions.