HOW IT IS CALCULATED
Understand revenue and contribution per unit
Normalize total revenue and variable costs by units or customers.
Instant resultClear formulaRuns locally
01Values
02revenue/unit − variable cost/unit
03Result
100000 revenue and 60000 variable cost over 1000 units → contribution 40/unit
Positive contribution is not the same as overall profit
Fixed costs still need to be covered after calculating contribution per unit.
02
In short
What logic does the calculator use?
revenue/unit − variable cost/unit
Example?
100000 revenue and 60000 variable cost over 1000 units → contribution 40/unit