Contribution Margin Ratio Calculator
Calculate the contribution margin ratio from total sales and variable costs.
Results
For planning and estimation. Review your assumptions, taxes, fees and business policies before using a result for a commercial decision.
How to use this calculator
What to enter
Enter or select the following as requested: Currency; Total sales; Total variable costs. Follow the units, valid ranges, examples, and options displayed beside each field.
What the result means
The contribution margin ratio is (sales minus variable costs) divided by sales. It shows the share of each sales unit available to cover fixed costs and then profit, using the costs entered.
When to use it
Use this to estimate how changes in sales or variable costs affect the amount available to cover fixed costs.