# Contribution margin: Definition and Example | RevenueWorks

> Contribution margin is the amount per sale that remains after all variable costs and is meant to cover fixed costs. Price €50, cost of goods €18, shipping and f

Source: https://revenueworks.ai/glossary/contribution-margin
Language: en

---

[RevenueWorks](https://revenueworks.ai/)/[Glossary](https://revenueworks.ai/glossary)/Contribution margin

# What is Contribution margin?

**Definition:** Contribution margin is the amount per sale that remains after all variable costs and is meant to cover fixed costs.

Last updated: 2026-11-07

## Example

Price €50, cost of goods €18, shipping and fees €7: contribution margin €25.

## How to use it

With the “Margin and Profit Calculator” calculator you enter your own numbers and see the result instantly. It runs in your browser, without sign-up. In the guide “How to calculate break-even in an online store” you find the background and common mistakes.

## Related terms

-   **Break-even ROAS:** Break-even ROAS is the ROAS from which your advertising no longer loses money.
-   **Margin:** Margin is the share of the net selling price that remains as profit.

## Frequently asked questions

What is Contribution margin?

Contribution margin is the amount per sale that remains after all variable costs and is meant to cover fixed costs.

What is an example of Contribution margin?

Price €50, cost of goods €18, shipping and fees €7: contribution margin €25.

## Work it out with your numbers

The matching calculator runs in your browser. No sign-up.

[Margin and Profit Calculator](https://revenueworks.ai/tools/marge-rechner)

## Keep reading

[Margin and Profit Calculator](https://revenueworks.ai/tools/marge-rechner)[How to calculate break-even in an online store](https://revenueworks.ai/guides/break-even-online-store)[Break-even ROAS](https://revenueworks.ai/glossary/break-even-roas)[Margin](https://revenueworks.ai/glossary/margin)[All terms](https://revenueworks.ai/glossary)

-   [Home](https://revenueworks.ai/)
-   [Website Design](https://revenueworks.ai/website-design)
-   [Website for Digital Nomads](https://revenueworks.ai/website-design-digital-nomads)
-   [Website Design Malta](https://revenueworks.ai/website-design-malta)
-   [Website Upgrades](https://revenueworks.ai/website-upgrade)
-   [Shopify Launch Bundle](https://revenueworks.ai/devforce-one/shopify-launch-bundle)
-   [Shopify Cost Calculator](https://revenueworks.ai/tools/shopify-cost-calculator)
-   [About RevenueWorks](https://revenueworks.ai/about-revenueworks)
-   [Methodology](https://revenueworks.ai/methodology)
-   [Website Check](https://revenueworks.ai/website-check)
-   [Partner Programme](https://revenueworks.ai/partner)
-   [Guides](https://revenueworks.ai/guides)
-   [Glossary](https://revenueworks.ai/glossary)
-   [Price Index](https://revenueworks.ai/price-index)
-   [Project Facts](https://revenueworks.ai/launch-benchmarks)
-   [CAC and LTV Calculator](https://revenueworks.ai/tools/cac-ltv-rechner)
-   [Returns Cost Calculator](https://revenueworks.ai/tools/retouren-rechner)
-   [Gross-Net VAT Calculator](https://revenueworks.ai/tools/brutto-netto-rechner)
-   [Affiliate Commission Calculator](https://revenueworks.ai/tools/affiliate-provisions-rechner)
-   [Workcation Cost Calculator](https://revenueworks.ai/tools/workcation-kosten-rechner)
-   [Tools and Calculators](https://revenueworks.ai/tools)
-   [Website Cost Calculator](https://revenueworks.ai/tools/website-kosten-rechner)
-   [ROAS and Break-even Calculator](https://revenueworks.ai/tools/roas-rechner)
-   [Shopify Fees Calculator](https://revenueworks.ai/tools/shopify-gebuehren-rechner)
-   [Margin and Profit Calculator](https://revenueworks.ai/tools/marge-rechner)
-   [Projects](https://revenueworks.ai/projects)
-   [Industries](https://revenueworks.ai/industries)
-   [AI Sales Agent](https://revenueworks.ai/sales-agent)
-   [AI Support Agent](https://revenueworks.ai/support-agent)
-   [AI Ops Agent](https://revenueworks.ai/ops-agent)
-   [AI Marketing Agent](https://revenueworks.ai/marketing-agent)
-   [Scaling](https://revenueworks.ai/scaling)
-   [Case studies](https://revenueworks.ai/case-studies)
-   [Affiliate automation](https://revenueworks.ai/affiliate)
-   [AffForce ONE](https://revenueworks.ai/affforce-one)
-   [Catalog](https://revenueworks.ai/catalog)
-   [Coworking Gozo](https://revenueworks.ai/workspace-gozo)
-   [Advertorial Playbook](https://revenueworks.ai/advertorial-playbook)
-   [Coupon Killer](https://revenueworks.ai/coupon-killer)
-   [Tracking](https://revenueworks.ai/tracking)
-   [Product data feed](https://revenueworks.ai/produktdatenfeed)
-   [Feed specification](https://revenueworks.ai/feed-spezifikation)
-   [Infrastructure as a Service](https://revenueworks.ai/infrastructure-as-a-service)
-   [DEVForce ONE](https://revenueworks.ai/devforce-one)
-   [Website Configurator](https://revenueworks.ai/website-konfigurator)
-   [Privacy](https://revenueworks.ai/privacy)
-   [Terms](https://revenueworks.ai/terms)
-   [Legal notice](https://revenueworks.ai/imprint)