KnowledgeContribution Margin
CM% · Sales money left after the variable costs required to deliver those sales.
Understand CM% in context.
Simply explained explanation
Sales money left after the variable costs required to deliver those sales.
Professional explanation
Revenue minus attributable variable costs, optionally shown as a share of revenue.
Analytical explanation
An effective profitability guardrail for scaling paid media. Agree whether fees, fulfilment, discounts and advertising are included.
Technical explanation
Contribution margin = net revenue − included variable costs; CM% = contribution / net revenue × 100. The cost taxonomy must remain stable over time.
Four complementary explanations — choose your level. Technical definitions are platform-specific where noted.
↗ How to use it
Calculate break-even targets using real contribution.
⚠ Common interpretation mistake
There is no universal cost list: define your model.
Metric calculator
Adjust the inputs to see how the metric is calculated.