Contribution Margin
Planning & BudgetingRevenue minus variable costs, showing how much each sale contributes to covering fixed costs and generating profit.
Example
Example: For someone earning $60,000/year trying to build a solid financial plan, understanding contribution margin is a key piece of the puzzle. Applied to a monthly budget, this concept could help you save an extra $200-$500/month. Build your plan with our 50/30/20 budget calculator.