CM2 %: Variable Margin Percentage

CM2 % measures the percentage of net revenue remaining after all variable costs—COGS, fulfillment, and transaction fees.

Formula

CM2 % = ( CM2 ÷ Net Revenue ) × 100

Formula Components

Metric	Definition
CM2 (After Fulfillment)	Profit after COGS, fulfillment, and transaction costs
Net Revenue	Gross revenue minus discounts and refunds

Metadata
Type	Percentage
Data Source	Shopify, Upstack Costs
Aggregation	Ratio

Example

Your Shopify store has $62,500 in CM2 from $125,000 net revenue.

Component	Value	Calculation
CM2	$62,500	After variable costs
Net Revenue	$125,000	Revenue base
CM2 %	50%	$62,500 ÷ $125,000 × 100

How It Works

CM2 % shows what percentage of revenue remains after all variable per-order costs. This is your “contribution margin rate” before marketing—the profit available to cover customer acquisition costs and fixed expenses.

When to Use

Scenario	Action
Setting CAC targets	Use CM2 % to determine maximum allowable acquisition cost
Comparing fulfillment options	Measure impact of different shipping carriers on margin
Tracking variable cost efficiency	Monitor CM2 % trends to catch cost creep
Evaluating pricing power	See how much margin remains for marketing after variable costs

Metric	Relationship
CM2 (After Fulfillment)	Dollar amount that CM2 % is based on
CM1 %	Margin before fulfillment costs
CM3 %	Margin after marketing costs

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