> ## 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.

# CM2 ROAS: Variable Margin Return on Ad Spend

> Track CM2 ROAS for your Shopify store. Measure variable margin return per dollar of ad spend.

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

## Formula

<Info>
  **CM2 ROAS** = **CM2** ÷ **Ad Spend**
</Info>

### Formula Components

| Metric                                                                           | Definition                                            |
| -------------------------------------------------------------------------------- | ----------------------------------------------------- |
| [**CM2 (After Fulfillment)**](/reference/metrics/orders/contribution-margin/cm2) | Profit after COGS, fulfillment, and transaction costs |
| **Ad Spend**                                                                     | Total advertising spend across platforms              |

| Metadata        |                                                                                                   |
| --------------- | ------------------------------------------------------------------------------------------------- |
| **Type**        | Multiplier                                                                                        |
| **Data Source** | [Shopify](/sources/shopify), [Meta Ads](/sources/facebook-ads), [Google Ads](/sources/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       |

***

## Related Metrics

| Metric                                                     | Relationship                      |
| ---------------------------------------------------------- | --------------------------------- |
| [CM1 ROAS](/reference/metrics/orders/performance/cm1-roas) | Gross margin per ad dollar        |
| [CM3 ROAS](/reference/metrics/orders/performance/cm3-roas) | Contribution margin per ad dollar |
| [ROAS](/reference/metrics/orders/performance/roas)         | Revenue per ad dollar             |

[See all Performance metrics →](/reference/metrics/orders/performance)