Subtract variable costs from revenue and show the contribution-margin ratio.
| Contribution margin | – |
| CM (%) | – |
Use this contribution-margin calculator when you know period revenue and variable costs and want the cash that is left to cover fixed costs and profit. Fixed costs are ignored here — pair with the break-even calculator. Cost of goods sold is not always equal to variable cost.
Contribution margin = revenue − variable costs. CM (%) = 100 × contribution ÷ revenue. Revenue must be positive.
Revenue: Sales for the period.
Variable costs: Costs that scale with those sales.
Contribution margin: Revenue minus variable costs.
CM (%): Contribution as a percent of revenue.
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