Total cost as a percentage of net revenue, showing what portion of revenue is consumed by all variable costs.
Total Cost % = ( Total Cost ÷ Net Revenue ) × 100
| Metric | Definition |
|---|
| Total Cost | Sum of all variable costs: COGS + fulfillment + transaction + marketing costs |
| Net Revenue | Gross revenue minus refunds and discounts |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your store generated $125,000 in net revenue with $87,500 in total costs, resulting in a 70% Total Cost %.
| Cost Category | Amount | % of Revenue |
|---|
| COGS | $43,750 | 35% |
| Fulfillment | $12,500 | 10% |
| Transaction | $3,750 | 3% |
| Marketing | $21,250 | 17% |
| Agency Fees + Opex | $6,250 | 5% |
| Total Cost | $87,500 | 70% |
How It Works
Total Cost % aggregates all cost categories—COGS, fulfillment, transaction fees, and marketing expenses—and expresses them as a percentage of net revenue. A lower percentage indicates better overall margin efficiency. This metric is the inverse of your Contribution Margin %.
When to Use
| Scenario | Action |
|---|
| Margin health check | Monitor overall cost structure relative to revenue |
| Cost optimization | Identify which cost categories consume the most margin |
| Pricing decisions | Understand if prices support your cost structure |
| Benchmarking | Compare cost efficiency across time periods or product lines |
| Metric | Relationship |
|---|
| Total Cost | The numerator in this calculation |
| Net Revenue | The denominator in this calculation |
| Contribution Margin % | The inverse: 100% minus Total Cost % |
| COGS | Largest cost component for most stores |
