Contribution Margin Calculator

Find how much remains after variable costs and before fixed costs.

Total revenue

Variable cost (%)

Monthly fixed costs

Why contribution margin matters

The contribution margin shows how much of revenue remains to cover fixed costs and generate profit. It is a key metric for pricing and sales analysis.

Low prices and high variable costs reduce the margin and require more sales volume.
Even with high revenue, the business can still operate at a loss if the margin is too weak.
A small improvement in margin can have a large impact on the overall result.

Practical tip: Track the margin by product or channel to identify the best performers and adjust pricing where needed.