> ## 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.

# CM2 %: Variable Margin Percentage

> Track CM2 percentage for your Shopify store. Measure margin after COGS, fulfillment, and transaction costs.

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

## Formula

<Info>
  **CM2 %** = ( **CM2** ÷ **Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                           | Definition                                            |
| -------------------------------------------------------------------------------- | ----------------------------------------------------- |
| [**CM2 (After Fulfillment)**](/reference/metrics/orders/contribution-margin/cm2) | Profit after COGS, fulfillment, and transaction costs |
| [**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 **\$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 |

***

## Related Metrics

| Metric                                                                             | Relationship                         |
| ---------------------------------------------------------------------------------- | ------------------------------------ |
| [CM2 (After Fulfillment)](/reference/metrics/orders/contribution-margin/cm2)       | Dollar amount that CM2 % is based on |
| [CM1 %](/reference/metrics/orders/contribution-margin/cm1-percent)                 | Margin before fulfillment costs      |
| [CM3 %](/reference/metrics/orders/contribution-margin/contribution-margin-percent) | Margin after marketing costs         |

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