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Coefficient

1 resource from Coefficient we point founders to, and the questions each answers.

🛠️ Tool
✓ Link checked Freemium Beginner

Before you argue about pricing, you need one number: what is left from each sale after variable costs. This free calculator does exactly that, computing contribution margin per unit (in their example a 150 dollar coffee maker leaves 72 dollars per sale), and you can copy it into your own Google Sheets to plug in your real costs. A practical way to check you are not accidentally pricing below cost, and to see how much room a discount actually leaves you.

Contribution Margin Calculator (free Google Sheets template)

From Coefficient by Coefficient

  • Contribution margin per unit is just selling price minus variable cost per unit: the money each sale leaves toward fixed costs and profit.
  • Copy it into your own sheet so you can swap in your real material, shipping, and payment-fee costs instead of sample numbers.
  • If contribution margin per unit is zero or negative, you are selling below cost and no volume fixes that.
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