Finance CalculatorsBusiness FinanceFree Tool
Contribution Margin Calculator
Calculate your contribution margin and contribution margin ratio from total revenue and total variable costs.
How to Use Contribution Margin Calculator
- 1Enter your total revenue
- 2Enter your total variable costs
- 3Click Calculate to see your contribution margin and CM ratio
Frequently Asked Questions
Contribution Margin = Revenue minus Variable Costs; CM Ratio (also called P/V ratio) = Contribution Margin divided by Revenue times 100.
This tool works with aggregate totals - your overall revenue and total variable costs - useful for a whole business or product line. The Break-Even Point Calculator instead works per-unit, using selling price and variable cost per unit, to find a break-even volume.
Contribution margin is what's left of revenue after variable costs, and it goes toward covering your fixed costs first - whatever remains after that is profit. A higher CM ratio means more of each rupee of sales is available to cover fixed costs and generate profit.
Whatever costs scale directly with sales volume (materials, direct labor, sales commissions, etc.) - enter your own total; the calculator doesn't itemize this.
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