---
title: "Contribution Margin Calculator: Per Unit and Ratio | MCC"
description: "Enter price, variable cost and fixed costs to get contribution margin, the ratio and break-even units. Free and private."
url: "https://mcc-solutionsnj.com/bookkeeping/contribution-margin-calculator"
---

Free tool

# Contribution margin calculator

## Overview

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

[![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)

Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software)

Selling price per unit ($)

Variable cost per unit ($)

Fixed costs for the period ($) (optional)

Excel workbook · $24

### 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)](/toolkits/break-even-and-pricing-workbook) [Free sample](/toolkits/break-even-and-pricing-workbook#free-starter)14-day full refund

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## 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.

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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.

Want a second pair of eyes on your books? [A free bookkeeping health check](/bookkeeping/health-check).

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](/bookkeeping/break-even-calculator), [profit margin and markup calculator](/bookkeeping/profit-margin-and-markup-calculator). See [all free tools](/free-tools). More free tools: [Down payment calculator](/bookkeeping/down-payment-calculator), [Hours and minutes to decimal calculator](/bookkeeping/hours-and-minutes-to-decimal-calculator), [Books Audit Python script](/bookkeeping/books-audit-python-script), or [see all free tools](/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](/editorial-standards).

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)](/toolkits/break-even-and-pricing-workbook) [Try the free starter](/toolkits/break-even-and-pricing-workbook#free-starter)

Also in the [Business Planning Bundle](/toolkits/business-planning-bundle): 4 products for $79 instead of $106 separately.

Tallyfinch

### Books you keep on your own computer

Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.

[See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software)

## Want your books and numbers handled?

[Free health check](/bookkeeping/health-check)[Call (908) 444-6373](tel:+19084446373)