### How to Use Contribution Margin Calculator

Enter the Price.

Enter the total fixed cost.

Press Calculate

# Contribution Margin Calculator

### How to calculate Contribution margin

###### Contribution Margin Formula: Price - Variables Cost

Let's say we have a company that sells a new mobile phone, its sales are $500,000 and the variable costs are $300,000. The contribution margin for this is $200,000,$200,000 is the money left to pay for fixed costs. It is also possible to calculate contribution margin per product, to do this divide the number of products sold by $500,000. The company sold a thousand phones, therefore, the contribution margin per product is 500,000 / 1000 = 50.

Price | Variable Cost | Contribution Margin | Price | Variable Cost | Contribution Margin |

40479 | 5992 | 34,487 | 87701 | 6860 | 34,487 |

82681 | 5885 | 76,796 | 10494 | 7354 | 76,796 |

56937 | 7772 | 49,165 | 36857 | 5643 | 49,165 |

71693 | 7874 | 63,819 | 55661 | 5415 | 63,819 |

46340 | 7021 | 39,319 | 67977 | 5417 | 39,319 |

95976 | 5761 | 90,215 | 26357 | 5779 | 90,215 |

Definition: Contribution margin is defined as the selling price of a product or a service minus the variable cost, it helps a company determine the profitability of a product.

Once we have the variable cost we deduct it from the price, variable cost can be many things, it may be materials, overhead, labor anything associated with the output. It all falls under variable cost, we also have a Average Variable cost Calculator which goes over variable costs.