Economics & Pricing
Contribution Margin Calculator
Most owners know their revenue. Far fewer know how much of each sale actually contributes to covering the business — after every direct cost has been paid. Contribution margin is that number: what each unit, customer, or job leaves behind once variable costs are removed.
This tool calculates your contribution margin as a percentage and as a cash figure, then grades it against realistic benchmarks for your type of business. It reveals whether your pricing is working, which products or services are genuinely profitable, and where thin margins are hiding in plain sight.
What this tool reveals
- Whether each sale is genuinely profitable after variable costs — not just revenue
- The contribution margin percentage your business is running at, and what that means at scale
- How price changes and cost reductions affect your margin — before you commit to either
- The foundation for every pricing and break-even decision in your business