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Contribution Margin Ratio Calculator

Answers the Question

How financially beneficial is each sale to my bottom line?

Calculator for Contribution Margin Ratio

 

What Is the Contribution Margin Ratio?

The contribution margin ratio provides insight into the profitability of each sale. Fixed costs are excluded from the calculation, because they will need to be paid for, whether any items are sold or not.

All things being equal, the higher the value, the better the health of the company.

Why Is it Important?

Formula(s) to Calculate Contribution Margin Ratio

Common Mistakes

Additional Business & Financial Calculators Available