Finance
Contribution Margin
Per-unit contribution to fixed costs/profit.
Formula
Formula
CM = price − variable cost
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| price | price/unit | computed result | — | result |
| var | variable cost/unit | computed result | — | result |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givenprice/unit = 50, variable/unit = 30
Result20
Example 2
Givenprice/unit = 20, variable/unit = 12
Result8