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How to calculate Contribution margin per unit

The Contribution margin per unit formula, with plain worked examples you can check yourself.

Contribution margin per unit = P − V

Worked examples

P = 80 · V = 32Contribution margin per unit = 48
P = 60 · V = 24Contribution margin per unit = 36
P = 100 · V = 60Contribution margin per unit = 40

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

Practice Contribution margin per unit with real numbers

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