IBO · Glossary · Contribution margin

Contribution margin

Contribution margin (B2B)

Contribution margin is revenue minus the costs that grow with it, before fixed costs.

Formula

Contribution = net revenue − variable costs − sales and marketing costs

Example

Net revenue €500,000, variable costs €150,000, marketing €50,000: contribution is €300,000. (invented numbers)

In IBO

The fourth step of the B2B platform and game provider ladder, before EBIT.

Last reviewed 30 Oct 2026.