> ## 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.

# CM4 %: Operating Profit Margin

> Track CM4 percentage for your Shopify store. Measure operating profit as a percentage of net revenue.

<Tip>
  CM4 % measures the percentage of net revenue that remains as operating profit after all costs—your true profit margin.
</Tip>

## Formula

<Info>
  **CM4 %** = ( **CM4** ÷ **Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                          | Definition                                |
| ------------------------------------------------------------------------------- | ----------------------------------------- |
| [**CM4 (Operating Profit)**](/reference/metrics/orders/contribution-margin/cm4) | Profit after all costs including OPEX     |
| [**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 **\$20,000** in CM4 from **\$125,000** net revenue.

| Component   | Value     | Calculation                |
| ----------- | --------- | -------------------------- |
| CM4         | \$20,000  | Operating profit           |
| Net Revenue | \$125,000 | Revenue base               |
| **CM4 %**   | **16%**   | \$20,000 ÷ \$125,000 × 100 |

***

## How It Works

CM4 % is your operating profit margin—the percentage of every revenue dollar that becomes actual profit. A 16% CM4 means 16 cents of profit from every dollar of net revenue after paying for products, fulfillment, marketing, agency fees, and operating expenses.

***

## When to Use

| Scenario                   | Action                                               |
| -------------------------- | ---------------------------------------------------- |
| Benchmarking profitability | Compare CM4 % against industry standards             |
| Tracking efficiency        | Monitor how operational changes impact profit margin |
| Setting profit goals       | Define target CM4 % for business planning            |
| Investor reporting         | Use CM4 % to demonstrate operating efficiency        |

***

## Related Metrics

| Metric                                                                             | Relationship                         |
| ---------------------------------------------------------------------------------- | ------------------------------------ |
| [CM4 (Operating Profit)](/reference/metrics/orders/contribution-margin/cm4)        | Dollar amount that CM4 % is based on |
| [CM3 %](/reference/metrics/orders/contribution-margin/contribution-margin-percent) | Margin before agency/OPEX            |
| [Net Revenue](/reference/metrics/orders/revenue/net-revenue)                       | Revenue base for percentage          |

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