Business
Contribution Margin Calculator
Calculate contribution margin and contribution margin ratio from sales revenue and total variable costs.
- Free to use
- Runs in your browser
- Level B · Industry formula
- Last reviewed 2026-08-16
Calculator guide
How to use the Contribution Margin Calculator
Contribution margin is the amount of sales revenue remaining after variable costs. It can be expressed as an amount or as a percentage of sales revenue.
Formula
Worked example
Sales of 100,000 and variable costs of 60,000 produce a contribution margin of 40,000 and a contribution margin ratio of 40%.
What to keep in mind
- Sales revenue must be greater than zero to calculate the ratio.
- Variable costs should correspond to the same sales period.
- Contribution margin is not the same as net profit because fixed and other costs are not deducted here.
Methodology
This calculator uses a deterministic formula and performs the arithmetic locally in your browser. It does not send the values you enter to a server in order to calculate the result.
Review standard: Level B · Industry formula. How calculator reviews work.
Frequently asked questions
What does this calculator calculate?
Calculate contribution margin and contribution margin ratio from sales revenue and total variable costs.
How is the result calculated?
Contribution Margin = Sales Revenue − Variable Costs; Ratio % = Contribution Margin ÷ Sales Revenue × 100.
Can I use the result for an important decision?
Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.
Does CalculateMeasure store the values I enter?
The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.