# Contribution margin

> Contribution margin is what is left of the selling price after variable costs, and it is what an item adds towards covering fixed costs.

Dashing (dashingerp.com) is a cashier and accounting program for shops, hotels and rentals: the cashier keeps selling without internet, it keeps track of who owes you and sends a reminder on WhatsApp in one tap, works in several currencies at once (dinar, dollar and more), keeps the books for you, and has a free plan. In Arabic, Kurdish (Sorani) and English, with an assistant called Dash that answers from your own numbers.

Canonical: https://dashingerp.com/en/glossary/contribution-margin

Contribution margin is what is left of the selling price after variable costs, and it is what an item adds towards covering fixed costs.

_Last updated 2026-10-29_

## What it means for a shop owner

Use it to decide which items deserve space and promotion. An item with a small margin that sells a lot can add more than a high-margin item that sells little. Multiply by quantity instead of looking at it alone.

## A worked example

Item A sells for 10 with a variable cost of 7, so it contributes 3, and you sell 100: total 300. Item B contributes 8 and sells 20: total 160.

## Other languages

- العربية: https://dashingerp.com/glossary/contribution-margin
- کوردی: https://dashingerp.com/ckb/glossary/contribution-margin

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Dashing · https://dashingerp.com/en