Business economics
Contribution Margin Calculator
Measure how much sales revenue remains after variable costs.
Runs locally
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Contribution margin$4,000.00
Contribution margin ratio40%
Variable cost ratio60%
Formula
Contribution margin = Sales − Variable costs
How to interpret the result
Contribution margin is available to cover fixed costs and profit. The ratio makes businesses of different sizes easier to compare.
Assumptions and limitations
This calculator is an educational estimate, not financial, investment, tax or policy advice. Use consistent units and verify material decisions against primary data and professional guidance.
Last reviewed 2026-07-14. Calculations tested 2026-07-14.