Act on the result
Compare period contribution with the fixed-cost requirement for the same period.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Owners separating variable-cost economics from fixed-cost coverage.
Outputs
Unit contribution, contribution ratio, period contribution and break-even units.
Start here
Keep price and variable cost on the same basis and use one clearly labelled sales period.
Use a different tool when: Do not use this to test a price increase; use Price Increase Profit Impact Planner for that decision. Use this tool to measure contribution.
Price & margin
Contribution Margin: unit contribution
Unit contribution, contribution ratio, period contribution and break-even units.
Amounts use the same currency as your inputs. No currency conversion is performed.
Contribution Margin
Reconcile unit contribution with period fixed-cost coverage.
Your numbers stay in this browser
Selling price excluding tax.
Cost that changes with each unit.
Units in the period.
Fixed costs for the same period.
Decision result
Every result is derived by the registered pricing engine.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
- Period contribution
- 20,000.00
- Contribution Per Unit Ex Tax
- 40.00
- Contribution Ratio
- 0.47
- Break Even Units
- 300
- Fixed Cost Coverage Ex Tax
- 8,000.00
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario20,000.00Baseline
Lower Unit price17,875.00-2,125.00
Higher Unit price22,125.002,125.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Period contribution
Total Contribution Ex Tax
unit contribution × units20,000 , ex taxResult20,000.00
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Contribution Margin Planner formulas →Inputs used by these formula steps
- Total Contribution Ex TaxUnit Price Ex Tax
- 85
- Total Contribution Ex TaxUnit Variable Cost Ex Tax
- 45
- Total Contribution Ex TaxUnits
- 500
- Total Contribution Ex TaxFixed Costs Ex Tax
- 12,000
Contribution Per Unit Ex Tax
Contribution Per Unit Ex Tax
unit price − unit variable cost40 , ex taxResult40.00
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Contribution Margin Planner formulas →Inputs used by these formula steps
- Contribution Per Unit Ex TaxUnit Price Ex Tax
- 85
- Contribution Per Unit Ex TaxUnit Variable Cost Ex Tax
- 45
- Contribution Per Unit Ex TaxUnits
- 500
- Contribution Per Unit Ex TaxFixed Costs Ex Tax
- 12,000
Contribution Ratio
Contribution Ratio
unit contribution ÷ unit price0.47 , ex taxResult0.47
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Contribution Margin Planner formulas →Inputs used by these formula steps
- Contribution RatioUnit Price Ex Tax
- 85
- Contribution RatioUnit Variable Cost Ex Tax
- 45
- Contribution RatioUnits
- 500
- Contribution RatioFixed Costs Ex Tax
- 12,000
Break Even Units
Break Even Units
ceil(fixed costs ÷ positive unit contribution)300 operational unitsResult300
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Contribution Margin Planner formulas →Inputs used by these formula steps
- Break Even UnitsUnit Price Ex Tax
- 85
- Break Even UnitsUnit Variable Cost Ex Tax
- 45
- Break Even UnitsUnits
- 500
- Break Even UnitsFixed Costs Ex Tax
- 12,000
Fixed Cost Coverage Ex Tax
Fixed Cost Coverage Ex Tax
total contribution − fixed costs8,000 , ex taxResult8,000.00
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Contribution Margin Planner formulas →Inputs used by these formula steps
- Fixed Cost Coverage Ex TaxUnit Price Ex Tax
- 85
- Fixed Cost Coverage Ex TaxUnit Variable Cost Ex Tax
- 45
- Fixed Cost Coverage Ex TaxUnits
- 500
- Fixed Cost Coverage Ex TaxFixed Costs Ex Tax
- 12,000
Inputs used
- Unit price
- 85
- Variable cost per unit
- 45
- Units
- 500
- Fixed costs
- 12,000
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| fixedCostsExTax | Fixed costs for the same period. | currency units/comparison period, ex tax | 0 to 10000000 | Required | 12000 |
| unitPriceExTax | Selling price excluding tax. | currency units/product unit, ex tax | 0 to 10000000 | Required | 85 |
| units | Units in the period. | whole product units/comparison period | 0 to 10000000 | Required | 500 |
| unitVariableCostExTax | Cost that changes with each unit. | currency units/product unit, ex tax | 0 to 10000000 | Required | 45 |
Contribution Margin: unit contribution
Period contribution is the amount available to cover fixed costs and profit after the entered variable costs.
Formula summary
- Primary formula
- contribution per unit = price − variable cost
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Reclassify any cost that changes with each unit before using the break-even volume.
When this estimate can be misleading
- Results depend on the accuracy and consistent basis of your inputs.
- The planner does not predict demand, competitor behaviour or supplier terms.
- Use the result as educational business decision support, not accounting, tax or legal advice.
- Period contribution is the amount available to cover fixed costs and profit after the entered variable costs.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Small-Business Pricing: A Decision Framework
Build a price from costs and contribution, then test margin, volume, capacity and customer-value assumptions in a clear decision sequence.
Read guide
Frequently asked questions
How do I measure contribution?
Compare period contribution with the fixed-cost requirement for the same period.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.