Client desk: (908) 444-6373 · booking@mcc-solutionsnj.com Online 7AM–9PM ET daily · Mobile Mon–Sat · ← MCC Solutions home
MCCMCC Solutions Free health check

Free tool

Contribution margin calculator

See how much each sale contributes toward fixed costs and profit.

Prefer to talk it through? Take the free books check or contact us.

Share

Put this tool on your own site

Free to use. Paste this where you want it to appear. It runs in the visitor's browser, so nothing they enter is sent to us, and the line under it links back to this page.

How it works

How it works

Contribution margin per unit = price minus variable cost per unit. The ratio is that margin divided by price. Break-even units are fixed costs divided by contribution margin per unit, rounded up.

FAQ

About this calculator

What counts as a variable cost?

Costs that rise with each unit sold, such as materials, shipping and per-sale fees. Rent and salaries are fixed costs.

How is this different from gross margin?

Contribution margin subtracts only variable costs. Gross margin subtracts the full cost of goods sold, which can include fixed production costs.

What if variable cost is higher than price?

Each sale loses money before fixed costs, so the calculator needs a price above variable cost.

Is anything saved?

No. The math runs in your browser and nothing you enter is sent to us.

Is this tax or financial advice?

No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.

Related: break even calculator, profit margin and markup calculator. See all free tools. More free tools: Free Excel templates, Cap rate calculator, Cash-on-cash return calculator, or see all free tools.

Free

Month-End Close Checklist (PDF)

The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.

General information, not tax or legal advice. How we write and check our tools.

Excel workbook

Break-Even and Pricing Workbook

Enter your fixed costs and what each product or service costs and sells for, then see the sales you need and the price that reaches your target margin.

See what is inside ($24) Try the free starter

Also in the Business Planning Bundle: 4 products for $79 instead of $106 separately.

Want your books and numbers handled?

Free health checkCall (908) 444-6373

Rather talk first? Leave your number and we'll call you.

Call (908) 444-6373Free health check