See how much each sale leaves to pay the fixed costs, in reais and as a percentage of the price.
The contribution margin answers a question no profit margin can: how much does one more sale actually help? Subtract everything a unit costs you only because it was sold — the product, packaging, freight, card fee, commission — from the price the customer pays, and what remains is the contribution margin. A product sold at R$ 80 with R$ 48 of variable costs contributes R$ 32 per unit, or 40% of the price. That R$ 32 does not go into your pocket: it goes first towards paying rent, salaries and every other fixed cost, and only what is left over after all of them are covered becomes profit.
The percentage version, the contribution margin ratio, is the number that lets you compare products that have nothing else in common. A R$ 8 item contributing R$ 3,20 and a R$ 800 item contributing R$ 320 both keep 40 cents of every real of revenue, which means they pull the same weight per real sold even though one is a hundred times bigger. Managers use the ratio to decide what to push, what to discount and what to drop, and to see instantly what a promotion costs: cutting 10% off a price with a 40% ratio does not remove a tenth of the margin, it removes a quarter of it.
Two practical readings follow directly from the unit figure. Divide your monthly fixed costs by the contribution margin per unit and you have the break-even point — R$ 10.000 of fixed costs against R$ 32 per unit means 313 units a month. And a negative contribution margin is a red flag that volume can never fix: if the variable cost is above the price, every extra sale increases the loss, so the answer is a higher price or a cheaper unit, never more marketing. All of it is arithmetic done in JavaScript on your own device, with no account, no upload and nothing recorded.
Contribution margin per unit = unit price − unit variable cost. Contribution margin ratio = (contribution margin ÷ price) × 100. Total contribution margin = contribution margin per unit × quantity sold. Break-even units = fixed costs ÷ contribution margin per unit.
It is what is left from the sale price after paying only the costs that exist because the sale happened — the product, packaging, freight, card fees and commission. A unit sold at R$ 80 with R$ 48 of variable costs contributes R$ 32 towards fixed costs and profit.
No. Contribution margin comes before fixed costs. It becomes profit only after rent, salaries and every other fixed expense of the month have been fully covered by the contribution of all units sold.
The ones that only appear when you sell: raw material or purchase cost, packaging, freight, card or marketplace fees, and sales commission. Rent, salaries, software and accounting are fixed and stay out of this calculation.
It shows how many cents of every real of revenue stay in the business, which makes products of very different prices comparable. A 40% ratio means R$ 0,40 of each R$ 1,00 sold goes towards fixed costs and profit.
Every sale is deepening the loss, and selling more makes it worse. The variable cost is above the price, so the only fixes are raising the price or reducing what each unit costs you.
No. Everything is calculated locally in JavaScript on your device — no value is uploaded, logged or stored.
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