Find how much of each sale is left after variable costs to cover fixed costs and profit.
Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup. Margin is what funds every fixed cost in a product business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
Contribution Margin
Margin % = (Selling price per unit − Variable cost per unit) ÷ Selling price per unit × 100
Margin % = (Selling price per unit − Variable cost per unit) ÷ Selling price per unit × 100 Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup.
Margin is what funds every fixed cost in a product business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
This calculator takes 2 inputs: Selling price per unit, Variable cost per unit. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.