Total Cost %: All Costs as Share of Revenue

Total cost as a percentage of net revenue, showing what portion of revenue is consumed by all variable costs.

Formula

Total Cost % = ( Total Cost ÷ Net Revenue ) × 100

Formula Components

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

See all Contribution Margin metrics →

Total Cost NC Contribution Margin

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics