Free tool
Contribution margin calculator
Overview
See how much each sale contributes toward fixed costs and profit.
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Excel workbook · $24
Break-Even and Pricing Workbook
Enter your fixed costs and what each product or service costs and sells for, then see the sales you need and the price that reaches your target margin.
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How it works
How it works
Contribution margin per unit = price minus variable cost per unit. The ratio is that margin divided by price. Break-even units are fixed costs divided by contribution margin per unit, rounded up.
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FAQ
About this calculator
What counts as a variable cost?
Costs that rise with each unit sold, such as materials, shipping and per-sale fees. Rent and salaries are fixed costs.
How is this different from gross margin?
Contribution margin subtracts only variable costs. Gross margin subtracts the full cost of goods sold, which can include fixed production costs.
What if variable cost is higher than price?
Each sale loses money before fixed costs, so the calculator needs a price above variable cost.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: break even calculator, profit margin and markup calculator. See all free tools. More free tools: Down payment calculator, Hours and minutes to decimal calculator, Books Audit Python script, or see all free tools.
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Excel workbook
Break-Even and Pricing Workbook
Enter your fixed costs and what each product or service costs and sells for, then see the sales you need and the price that reaches your target margin.
See what is inside ($24) Try the free starter
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Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
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