Contribution Margin Calculator

How contribution margin and break-even are calculated

The contribution margin per unit is the price minus the variable cost. It shows how much each unit sold contributes toward covering fixed costs and generating profit.

The break-even point is found by dividing the fixed costs by the contribution margin per unit. At this sales volume the result is exactly zero.

What you enter and what you get

Enter the price per unit, the variable cost per unit and the fixed costs. The result gives the contribution margin per unit, the contribution margin percentage and the break-even volume in units and in dollars.

Break-even revenue tells you how large turnover has to be for all costs to be covered.

Who it is for

The calculator suits entrepreneurs and finance leads who plan pricing, budgets or the profitability of a new product and want to know the minimum sales required.

Reading the result

The higher the contribution margin percentage, the less you need to sell to cover fixed costs. Sales above the break-even point generate profit; sales below it run at a loss.