> ## 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.

# Marketing Cost %: Marketing Spend as Share of Revenue

> Track marketing costs as a percentage of net revenue. Measure how much revenue goes to user-defined marketing spend for contribution margin analysis.

<Tip>
  Marketing cost as a percentage of net revenue, showing what portion of revenue is spent on marketing.
</Tip>

## Formula

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

### Formula Components

| Metric                                                                             | Definition                                           |
| ---------------------------------------------------------------------------------- | ---------------------------------------------------- |
| [**Marketing Cost**](/reference/metrics/orders/contribution-margin/marketing-cost) | User-defined marketing costs from order cost entries |
| [**Net Revenue**](/reference/metrics/orders/revenue/net-revenue)                   | Revenue after discounts and refunds                  |

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

***

## Example

Your store earned **\$250,000** in net revenue with **\$12,500** allocated to marketing costs:

| Month    | Net Revenue | Marketing Cost | Marketing Cost % |
| -------- | ----------- | -------------- | ---------------- |
| January  | \$78,000    | \$3,800        | 4.9%             |
| February | \$82,000    | \$4,200        | 5.1%             |
| March    | \$90,000    | \$4,500        | 5.0%             |

***

## How It Works

Marketing Cost % divides user-defined marketing costs by net revenue, showing what percentage of revenue goes to marketing expenses not captured by ad platform integrations. This includes influencer fees, affiliate commissions, sponsorships, and other marketing spend entered as order cost entries.

***

## When to Use

| Scenario          | Action                                                   |
| ----------------- | -------------------------------------------------------- |
| Budget planning   | Set target marketing cost % thresholds for profitability |
| Margin analysis   | Monitor marketing's impact on contribution margin        |
| Cost benchmarking | Compare marketing spend across periods or segments       |
| CM3 optimization  | Reduce marketing cost % to improve contribution margin   |

***

## Related Metrics

| Metric                                                                         | Relationship                                     |
| ------------------------------------------------------------------------------ | ------------------------------------------------ |
| [Marketing Cost](/reference/metrics/orders/contribution-margin/marketing-cost) | Numerator—total marketing spend                  |
| [Net Revenue](/reference/metrics/orders/revenue/net-revenue)                   | Denominator—revenue after adjustments            |
| [CM2 Per Order](/reference/metrics/orders/contribution-margin/cm2-per-order)   | Margin before marketing costs are deducted       |
| [CM3 Per Order](/reference/metrics/orders/contribution-margin/cm3-per-order)   | Result after deducting marketing and agency fees |

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