CM1 % measures the percentage of net revenue that remains after deducting all product costs—your gross margin rate.
CM1 % = ( CM1 ÷ Net Revenue ) × 100
| Metric | Definition |
|---|
| CM1 (Gross Margin) | Profit after COGS and other COGS |
| Net Revenue | Gross revenue minus discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your Shopify store has $75,000 in CM1 from $125,000 net revenue.
| Component | Value | Calculation |
|---|
| CM1 | $75,000 | Gross margin dollars |
| Net Revenue | $125,000 | Revenue base |
| CM1 % | 60% | $75,000 ÷ $125,000 × 100 |
How It Works
CM1 % normalizes your gross margin as a percentage, making it easy to compare profitability across time periods, product lines, or channels regardless of revenue volume. A 60% CM1 means you keep 60 cents of every revenue dollar after paying for products.
When to Use
| Scenario | Action |
|---|
| Benchmarking product margin | Compare CM1 % across categories to find efficiency gaps |
| Tracking margin trends | Monitor CM1 % over time to catch cost increases early |
| Evaluating pricing changes | Measure how price adjustments impact gross margin rate |
| Comparing channels | Identify which sales channels deliver higher margins |
| Metric | Relationship |
|---|
| CM1 (Gross Margin) | Dollar amount that CM1 % is based on |
| CM2 % | Margin after fulfillment costs |
| Net Revenue | Revenue base for percentage calculation |
