CM1 %: Gross Margin Percentage

CM1 % measures the percentage of net revenue that remains after deducting all product costs—your gross margin rate.

Formula

CM1 % = ( CM1 ÷ Net Revenue ) × 100

Formula Components

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

See all Contribution Margin metrics →

⌘I

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics