Contribution margin is the amount each unit sold contributes toward covering fixed costs and generating profit — calculated as selling price minus variable costs per unit. Enter price, variable costs, fixed costs, and volume to see total contribution margin, contribution margin ratio, and operating profit. It's the key metric for break-even analysis and pricing decisions.
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What Is Break-Even Analysis?
Break-even analysis tells you exactly how many units you need to sell before you start making money. Here's how to calculate it and use it to make better business decisions.
What Is Profit Margin and How Do You Calculate It?
Revenue is vanity, profit is sanity. Here's how to calculate gross, operating, and net profit margin, and why margin matters more than top-line revenue.
Gross Profit vs. Net Profit: What's the Difference?
Gross profit and net profit both appear on income statements but measure very different things. Here's what each one tells you, and why high gross margin doesn't always mean profitability.
What Is Contribution Margin and Why Does It Matter?
Contribution margin shows how much each sale contributes toward covering fixed costs. It's the right metric for pricing decisions, product mix analysis, and understanding your break-even point.
How to Find the Minimum Viable Price for Your Product
Every product has a price floor below which you lose money regardless of volume. Here's how to calculate your breakeven price and use it to make smarter pricing and channel decisions.
