Businesspricing
Contribution Margin Calculator
What each unit contributes toward fixed costs once its own variable cost is paid. This is the number that decides whether selling more helps or hurts.
Also called: contribution per unit calculator, variable cost margin.
Contribution per unit
₹40
Each unit contributes ₹40 towards fixed costs. A contribution margin of 40%. Across 1,000 units that is ₹40,000.
Contribution margin
40%
Total contribution
₹40,000
Method and background
How this is calculated
Price minus variable cost. If it is positive, every additional unit moves you closer to covering fixed costs; if it is negative, every additional unit deepens the loss and volume is the wrong lever entirely.
cm = price - variable_cost; cm_pct = (price - variable_cost)/price * 100- p
- Price per unit (currency)
- v
- Variable cost per unit (currency)