Profit Margin
Understand profit as a share of your revenue.
Business & Work · FREE TO USE
Contribution Margin & Discount Calculator
Compare contribution per unit before and after a discount, and the extra sales needed to retain it.
02EXAMPLE RESULT
Contribution per discounted unit
30.00
USD
Original contribution per unit40.00USD
Discounted selling price90.00USD
Original contribution margin40.000%
Discounted contribution margin33.333%
Discounted units needed134units
Additional units needed34units
Whole-unit volume increase34.000%
Results update as you type. Calculate adds a snapshot to your history.
How this calculation works
Contribution pays toward fixed costs and then operating profit; it is not net profit. Include costs that change with each unit sold. The model holds variable cost per unit and total fixed costs constant. It does not predict demand, capacity, taxes, tiered fees or a change in product mix. Prices and costs round half up to the currency minor unit first, and the discounted unit price rounds once before calculating contribution. Whole-unit volume rounds up. No finite volume can preserve positive contribution if the discounted unit contribution is zero or negative.
Contribution per unit = selling price − variable cost. Contribution margin = contribution ÷ selling price × 100. Required discounted units = ceiling(original units × original contribution ÷ discounted contribution).
Your calculation, step by step
- Original contribution = 100.00 − 60.00 = 40.00 USD per unit.
- Discounted unit price = 90.00 USD, rounded half up to 2 decimal places.
- Discounted contribution = 90.00 − 60.00 = 30.00 USD per unit.
- Round up 100 × 40.00 ÷ 30.00 to 134 whole units.
A worked example
At a price of USD 100 and variable cost of USD 60, contribution is USD 40 (40%). A 10% discount leaves USD 30 (33.333%). Matching the contribution from 100 original sales requires 134 discounted sales: 34 more units, a 34% volume increase.
Work through an example.
Inspect the assumptions and limits before applying a result.