# Contribution Margin Ratio Calculator Online

Contribution margin refers to the price you need to add to the rest of the product costs after selling some; if you want to calculate it, you will have to know some production cost values & then apply the formula.
You have to deduct variable price per product from price per product to know the cost margin & it’s a thing you should never forget to calculate.

## Contribution Margin Ratio Calculator

Enter Per Unit Sales price, Variable cost per Unit, Number of Unit and hit anywhere

## What Are the Purposes of Contribution Margin Calculator Online?

The uses of the contribution margin calculator is quite simple; they are:

• Moreover, you can control the pricing if you know both things; if you do it online, you won’t have to buy an expensive one.

## How to Calculate The Contribution Margin and Ratio?

To get the contribution margin ratio manually you need to know that formula. Here I will show you the formula how to calculate it manually by it’s percentage formula.

Contribution margin formula= (Per unit sales price x Number of Units) – (Variable Costs per Unit x Number of Units)

Contribution margin ratio percentage formula= Contribution Margin ÷ (Per units sales price x Number of Units)

Profit generate formula= Contribution margin – Fixed cost.

## Contribution Margin Calculation Example:

To see the live calculation please see the below example.

Supposed:

• Per Unit Sales price: 100
• Variable cost per Unit: 8
• Number of Units: 12
• Fixed cost: 0

Now see how our calculator calcuate the data.

Contribution margin= (100 x 12) – (8 x 12)

= 1200 – 96

= 1104

Contribution margin ratio= 1104 ÷ ( 100 x 12)

= 1104 ÷ 1200

= .92

That means 92%. Because if we want to calculate it in percentage then we need to multiply it by 100%. So, .92 x 100%= 92%

Profit generate= 1104 – 0

= 1104

Because our fixed cost value was 0.

## Contribution Margin Calculation Formula Excel:

You can easily calculate the contribution margin in excel by the below formula.

Contribution margin= (Per unit sales price * Number of Units) - (Variable Costs per Unit * Number of Units)

At first design your excel sheet like the below table:

Example:

If your input data 100, 8, 12, 0 then your calcuation would be

= B1 * B3 – B2 * B3

=100 * 12 – 8 * 12

= 1200 – 96

= 1104

### How To Calculate Contribution Margin Ratio in Excel?

You can also calculate the ratio. To calculate the ratio type the below formula on B6 cell.

=B5 / (B1 * B3)

Unfortunately still if you can’t understand then look the below screenshot.