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Contribution Margin Calculator
Understand how much revenue remains after paying variable costs to cover fixed overheads and generate profit.
Revenue & Cost Inputs
Costs that scale with sales: materials, direct fulfillment, sales commission.
Contribution Margin
₹6,00,000
Revenue - Variable Costs
Contribution Margin Ratio
60%
Share of each rupee covering fixed costs
Unit CM
₹600
Per unit soldOperating Profit
₹2,50,000
CM - Fixed CostsBEP Sales Needed
₹5,83,333
Fixed Costs ÷ CM %Contribution Margin Formulas
Contribution Margin
CM = Revenue - Variable Costs
Contribution Margin Ratio
CM Ratio = (CM ÷ Revenue) × 100
Required Break-Even Sales
BEP Sales = Fixed Costs ÷ (CM Ratio ÷ 100)
Frequently Asked Questions
What is the Contribution Margin formula?
Contribution Margin = Revenue - Variable Costs. Contribution Margin Ratio (%) = (Contribution Margin ÷ Revenue) × 100.
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