Contribution Margin Calculator

Revenue ($):

Variable Costs ($):

How the Contribution Margin Calculator works

Formula. Contribution margin = revenue − variable costs. Contribution margin ratio = (contribution margin / revenue) × 100.

Example. Revenue of $100 and variable costs of $40 give a margin of 100 − 40 = $60. The ratio is (60 / 100) × 100 = 60%.

Limitation. Fixed costs are not in the formula, so the result is not profit and is not a break-even point.