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Menu engineering / Free calculator

Contribution Margin

Find the amount each sale contributes after its direct variable cost.

Calculate your result

Enter the figures for the same reporting period. Your entries are calculated locally in your browser.

Common questions

Is contribution margin the same as net profit?

No. Contribution margin is what remains before allocating fixed expenses and other costs.

Can variable costs exceed the price?

Yes. A negative contribution signals that variable cost exceeds the selling price.

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