Contribution Margin Calculator

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

Your details

Selling price (per unit)$Variable cost (per unit)$

Contribution margin

$20.00

CM ratio: 40.00%

Contribution margin$20.00

Formula

Contribution margin = price − variable cost. CM ratio = contribution margin ÷ price.

Sources & methodology

•U.S. SBA — business guides — U.S. SBA

Last updated: 2026-07-20

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