> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# CM1 %: Gross Margin Percentage

> Track CM1 percentage for your Shopify store. Measure what percentage of net revenue remains after product costs.

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

## Formula

<Info>
  **CM1 %** = ( **CM1** ÷ **Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                      | Definition                                |
| --------------------------------------------------------------------------- | ----------------------------------------- |
| [**CM1 (Gross Margin)**](/reference/metrics/orders/contribution-margin/cm1) | Profit after COGS and other COGS          |
| [**Net Revenue**](/reference/metrics/orders/revenue/net-revenue)            | Gross revenue minus discounts and refunds |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/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    |

***

## Related Metrics

| Metric                                                                  | Relationship                            |
| ----------------------------------------------------------------------- | --------------------------------------- |
| [CM1 (Gross Margin)](/reference/metrics/orders/contribution-margin/cm1) | Dollar amount that CM1 % is based on    |
| [CM2 %](/reference/metrics/orders/contribution-margin/cm2-percent)      | Margin after fulfillment costs          |
| [Net Revenue](/reference/metrics/orders/revenue/net-revenue)            | Revenue base for percentage calculation |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)