How this calculator works
Enter the values for first value, second value and review the units before calculating.
Formula / method
Contribution = price − variable cost; margin = contribution ÷ price × 100
Worked example
A $50 price and $30 variable cost give $20 contribution and 40% margin.
Assumptions and limitations
Fixed costs are excluded and price and variable cost share one unit basis.
The result does not account for sales mix, fixed costs or capacity constraints.