Finance

Calculate contribution margin ratio

How it works in Excel

• B1 is the price.
• B2 is the variable cost per unit.
• Format the cell as a percentage.
• This is the share of each sale left to pay fixed costs.

The idea in general

After paying for the item itself, this much of each sale helps cover the rent and salaries.

What I assumed

• The price is in B1 and the variable cost is in B2.

Check the result on your own data before relying on it.