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Calcimator

Contribution Margin Calculator

Calculate per-unit contribution margin and ratio analysis for pricing decisions.

Inputs

$
$
$

Results

CM Per Unit

$20.00

≈ 4 cups of coffee

Total Contribution Margin$200,000.00
CM Ratio40%
Operating Income$100,000.00
Break-Even Units5,000
Break-Even Revenue$250,000.00
Margin of Safety50%
How to Use This Calculator
  1. Enter total revenue and units sold for the period.
  2. Input total variable costs (materials, direct labor, commissions).
  3. Enter fixed costs.
  4. Review contribution margin per unit, CM ratio, and break-even revenue.
  5. Use the CM ratio to project how much each additional dollar of revenue contributes toward covering fixed costs.

How the result changes with Total Revenue

Total RevenueCM Per Unit
$10,000,000.00$970.00
$35,000,000.00$3,470.00
$65,000,000.00$6,470.00
$90,000,000.00$8,970.00

What each input means

Total Revenue
Total sales revenue for the period.
Units Sold
Total number of units sold.
Total Variable Costs
Total variable costs (materials, direct labor, commissions).
Fixed Costs
Total fixed costs (rent, salaries, overhead).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Total Revenue = 500000, Units Sold = 10000, Total Variable Costs = 300000, Fixed Costs = 100000 = 4 input(s) provided
  2. Calculate CM Per Unit
    CM Per Unit
    20 = $20
  3. Calculate Total Contribution Margin
    Total Contribution Margin
    200000 = $200,000
  4. Calculate CM Ratio
    CM Ratio
    40 = 40

Engine last updated .

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