Free Tool

Contribution Margin Calculator

See how much each sale contributes toward fixed costs and profit. Enter your price and variable cost per unit.

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COGS + shipping + fees per unit

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Understanding Contribution Margin

What it measures

Contribution margin is price minus variable cost per unit. It is the amount each sale contributes toward covering fixed costs (rent, salaries, software) and then profit. Unlike gross margin, it isolates only the costs that scale with each unit.

Why it drives decisions

Contribution margin tells you how many units you must sell to break even on fixed costs, and which products actually pull their weight. A high-revenue product with thin contribution margin can be worse than a smaller one with a fat margin.

Protecting contribution margin

Discounting cuts straight into contribution margin. Monitoring competitors lets you discount only as much as the market forces, preserving the margin that pays your overhead. Price Patrol automates that discipline.

Protect the Margin That Pays Your Bills

Price Patrol monitors competitors and reprices within floors so discounts never erase your contribution margin.

Install Free on Shopify

Free plan available. No credit card needed.

Competitor monitoringFloor-price protectionFree plan available