CM2 ROAS: Variable Margin Return on Ad Spend

CM2 ROAS measures how much variable margin (after fulfillment) you earn for every dollar spent on advertising.

Formula

CM2 ROAS = CM2 ÷ Ad Spend

Formula Components

Metric	Definition
CM2 (After Fulfillment)	Profit after COGS, fulfillment, and transaction costs
Ad Spend	Total advertising spend across platforms

Metadata
Type	Multiplier
Data Source	Shopify, Meta Ads, Google Ads
Aggregation	Ratio

Example

Your Shopify store has $62,500 CM2 and spent $25,000 on advertising.

Component	Value	Calculation
CM2	$62,500	Variable margin
Ad Spend	$25,000	Advertising cost
CM2 ROAS	2.5x	$62,500 ÷ $25,000

How It Works

CM2 ROAS shows how much variable margin your advertising generates. A 2.5x CM2 ROAS means every dollar of ad spend generates $2.50 in variable margin. This margin must cover marketing costs and fixed expenses to be profitable.

When to Use

Scenario	Action
Measuring ad efficiency	Track CM2 ROAS for margin-aware efficiency
Setting ROAS targets	CM2 ROAS > 1x means ads generate positive margin
Comparing campaigns	Identify which campaigns deliver highest CM2 ROAS
Budget allocation	Shift spend toward higher CM2 ROAS channels

Metric	Relationship
CM1 ROAS	Gross margin per ad dollar
CM3 ROAS	Contribution margin per ad dollar
ROAS	Revenue per ad dollar

See all Performance metrics →

⌘I

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics