Subscription CM1: Subscription Gross Margin

Subscription CM1 measures the gross margin (revenue minus COGS) from subscription orders—the product-level profitability of recurring revenue.

Formula

Subscription CM1 = Subscription Revenue − Subscription COGS

Formula Components

Metric	Definition
Subscription Revenue	Revenue from subscription orders
Subscription COGS	Product costs for subscription orders

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Sum

Example

Your Shopify store has $18,000 subscription revenue with $7,200 COGS.

Component	Value	Calculation
Subscription Revenue	$18,000	Recurring order revenue
Subscription COGS	$7,200	Product costs
Subscription CM1	$10,800	$18,000 − $7,200

How It Works

Subscription CM1 shows the gross margin from subscription orders before fulfillment and marketing costs. Subscriptions often have predictable COGS, making margin analysis straightforward.

When to Use

Scenario	Action
Subscription profitability	Measure product-level margin
Pricing decisions	Ensure subscription pricing covers COGS
Product mix	Optimize subscription product selection
Discount impact	Track how subscription discounts affect margin

Metric	Relationship
CM1	Overall gross margin
Subscription CM2	After fulfillment
Subscription Revenue	Numerator component
Subscription CM1 %	Margin rate

See all Contribution Margin metrics →