Business pricing and operations

Contribution margin calculator

Contribution pays fixed costs before any operating profit remains.

Your numbers

Use the units shown. Results update as you change valid inputs.

YOUR RESULT

Contribution pays fixed costs before any operating profit remains.

THE NUMBERS, EXPLAINED

How to use this calculator.

Contribution pays fixed costs before any operating profit remains.

Start with your inputs

Enter unit price (£), unit variable cost (£), units sold. Keep amounts in the units shown on each field. The example is a starting point, not a recommended value.

InputExample value
Unit price (£)30
Unit variable cost (£)20
Units sold100

A worked example

With the example inputs above, unit contribution (£) is 10. Change the inputs to explore your own scenario.

Putting the example numbers into the formula

Unit contribution (£)
(30)-(20) = 10

Total contribution (£)
((30)-(20)) × (100) = 1,000

All results for the example inputs above
ResultExample answer
Unit contribution (£)10
Total contribution (£)1,000

How this is calculated

Unit contribution (£)

a-b

Total contribution (£)

(a-b) × c

Symbols and units
a
Unit price (£)
b
Unit variable cost (£)
c
Units sold

Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.

Assumptions and limits

Contribution pays fixed costs before any operating profit remains.

Calculations use the values you enter. Blank or invalid inputs show an error instead of silently substituting zero. Results are displayed to useful precision; calculations retain the underlying numeric precision.

Questions about this tool

What does the result tell me?

Unit contribution (£); Total contribution (£). The result applies to the method and inputs described above. Check the units and assumptions before using it in a decision.

Why might another calculator differ?

Differences in units, rounding, timing or model definitions can produce different answers. Compare the input definitions and the method, rather than only the final number. For this tool: Contribution pays fixed costs before any operating profit remains.

Are my inputs stored or sent to AI?

Calculations on this page happen in your browser. The separate AI question finder sends its submitted conversation to OpenAI; these calculator fields are not sent. Favourites and recent tool names are stored locally. A shared link contains the inputs you choose to include.

Review status

Software example and browser checks are recorded in our quality report. No external expert review is claimed. Created with coding assistance; calculations run as ordinary browser code.

Read the quality report →