> ## 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 CM2: Subscription Variable Margin

> Track subscription CM2 for your Shopify store. Measure variable margin from subscription orders after fulfillment costs.

<Tip>
  Subscription CM2 measures the variable margin from subscription orders after COGS and fulfillment—what's available to cover marketing and overhead.
</Tip>

## Formula

<Info>
  **Subscription CM2** = **Subscription CM1** − **Subscription Fulfillment Costs**
</Info>

### Formula Components

| Metric                                                                                 | Definition                              |
| -------------------------------------------------------------------------------------- | --------------------------------------- |
| [**Subscription CM1**](/reference/metrics/orders/contribution-margin/subscription-cm1) | Gross margin from subscription orders   |
| **Subscription Fulfillment Costs**                                                     | Shipping and handling for subscriptions |

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

***

## Example

Your Shopify store has **\$10,800** subscription CM1 with **\$2,700** fulfillment costs.

| Component            | Value       | Calculation           |
| -------------------- | ----------- | --------------------- |
| Subscription CM1     | \$10,800    | Gross margin          |
| Fulfillment Costs    | \$2,700     | Shipping and handling |
| **Subscription CM2** | **\$8,100** | \$10,800 − \$2,700    |

***

## How It Works

Subscription CM2 accounts for fulfillment costs on subscription orders. Subscriptions often have predictable shipping (same products, regular intervals), making CM2 more stable than one-time orders.

***

## When to Use

| Scenario                 | Action                                      |
| ------------------------ | ------------------------------------------- |
| Subscription economics   | Measure true variable margin                |
| Fulfillment optimization | Track shipping efficiency for subscriptions |
| Marketing budget         | CM2 is available for marketing spend        |
| Profitability analysis   | Compare to one-time order CM2               |

***

## Related Metrics

| Metric                                                                                       | Relationship            |
| -------------------------------------------------------------------------------------------- | ----------------------- |
| [CM2](/reference/metrics/orders/contribution-margin/cm2)                                     | Overall variable margin |
| [Subscription CM1](/reference/metrics/orders/contribution-margin/subscription-cm1)           | Before fulfillment      |
| [Subscription CM2 %](/reference/metrics/orders/contribution-margin/subscription-cm2-percent) | Margin rate             |

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