> ## 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.

# Subscription CM1: Subscription Gross Margin

> Track subscription CM1 for your Shopify store. Measure gross margin from subscription orders.

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

## Formula

<Info>
  **Subscription CM1** = **Subscription Revenue** − **Subscription COGS**
</Info>

### Formula Components

| Metric                                                                             | Definition                            |
| ---------------------------------------------------------------------------------- | ------------------------------------- |
| [**Subscription Revenue**](/reference/metrics/orders/revenue/subscription-revenue) | Revenue from subscription orders      |
| **Subscription COGS**                                                              | Product costs for subscription orders |

| Metadata        |                                                                                      |
| --------------- | ------------------------------------------------------------------------------------ |
| **Type**        | Currency                                                                             |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Upstack Costs](/sources/catalog/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 |

***

## Related Metrics

| Metric                                                                                       | Relationship         |
| -------------------------------------------------------------------------------------------- | -------------------- |
| [CM1](/reference/metrics/orders/contribution-margin/cm1)                                     | Overall gross margin |
| [Subscription CM2](/reference/metrics/orders/contribution-margin/subscription-cm2)           | After fulfillment    |
| [Subscription Revenue](/reference/metrics/orders/revenue/subscription-revenue)               | Numerator component  |
| [Subscription CM1 %](/reference/metrics/orders/contribution-margin/subscription-cm1-percent) | Margin rate          |

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