Contribution Margin Calculator

Find contribution margin per unit and ratio.

Contribution margin ($) 20

Contribution ratio (%) 40

Formula: contribution = price − variable cost

Step-by-step with your numbers:

1. Values used:

2. Selling price = 50 $

3. Variable cost per unit = 30 $

5. Contribution margin = Selling price - Variable cost per unit = 50 - 30 = 20$

6. Contribution ratio = 40%

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Contribution margin is what each sale contributes toward fixed costs and profit.

The math behind it

contribution = price − variable cost; ratio = contribution ÷ price × 100.

$50 price, $30 variable → $20 (40%).

Use?

Break-even analysis and pricing decisions.