Unit Contribution Margin Calculator

About this calculator

The unit contribution margin is what’s left from one unit’s selling price after subtracting only its variable cost — materials, direct labor, shipping per unit — while ignoring fixed costs like rent, so margin = selling price − variable cost per unit. Dividing that margin by the selling price gives the contribution margin ratio as a percentage.

Financial analysts and product managers use this figure for break-even analysis and pricing decisions, since it shows exactly how much each additional unit sold contributes toward covering fixed costs and eventually generating profit. This calculator takes the selling price and variable cost per unit and returns both the unit contribution margin and its ratio.