Contribution Margin Calculator
See how much each sale contributes toward fixed costs and profit, and where your break-even point sits.
Quick answer
Contribution margin is the selling price per unit minus the variable cost per unit. The ratio is that margin / price. Profit = contribution margin x units - fixed costs.
Contribution Margin Calculator
Contribution per Unit
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Contribution Margin Ratio
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Total Contribution
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Operating Profit
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Break-even Units
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Break-even Revenue
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Operating profit by units sold
Profit at Different Volumes
| Volume | Units | Revenue (₹) | Variable costs (₹) | Contribution (₹) | Operating profit (₹) |
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Assumptions & method
- Contribution per unit = selling price − variable cost per unit. Ratio = contribution per unit ÷ selling price.
- Total contribution = contribution per unit × units sold. Operating profit = total contribution − total fixed costs.
- Break-even units = fixed costs ÷ contribution per unit. Break-even revenue = break-even units × selling price (equal to fixed costs ÷ ratio).
- Price, variable cost per unit and fixed costs are assumed constant across the volumes shown. Real costs often step up or change with scale.
- Single product, no taxes, interest, discounts or sales mix. Operating profit here is before interest and tax.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is contribution margin?
Contribution margin is selling price less variable cost: the amount each unit sold contributes toward paying fixed costs and then toward profit. Looking at it per unit, as a ratio of sales and in total shows how your cost structure behaves as volume changes. Because fixed costs do not move with output, operating profit is simply total contribution minus fixed costs, and break-even is the volume at which they are equal. Managers use it to compare products, test price changes and judge whether extra volume is worth chasing. This calculator also shows profit at several volume levels.