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Contribution Margin Calculator (CM1, CM2, CM3)

See how product, operations and acquisition costs reduce contribution in three clear stages.

Instant calculation No account needed
01 / YOUR NUMBERS

Enter your inputs

Change any value to update the result instantly.

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LIVE RESULT

CM3 after marketing

₹35,500.00

See how product, operations and acquisition costs reduce contribution in three clear stages.

Net revenue₹1,00,000.00
CM1 after COGS₹70,000.00
CM1 margin70%
CM2 after operations₹55,500.00
CM2 margin55.5%
CM3 margin35.5%

Contribution progression

Net revenue
CM1 after COGS
CM2 after operations
CM3 after marketing

CM1/CM2/CM3 definitions vary by company. These results use the definitions shown in the formula below.

THE THINKING BEHIND THE NUMBER

How to use this calculator

CM definitions vary by business. This calculator uses CM1 after COGS, CM2 after variable operating costs, and CM3 after performance marketing.

THE METHOD

CM1 = net revenue − COGS. CM2 = CM1 − shipping − packaging − fees − returns. CM3 = CM2 − marketing.

A practical example

For illustration, enter gross revenue ₹1,00,000, cogs ₹30,000, shipping ₹7,000, packaging ₹2,000. With the remaining fields at their starting values, the cm3 after marketing is ₹35,500.00. Replace these sample figures with your own numbers before making a decision.

How to read your result

Always compare CM stages using the same definitions across months and channels.

Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.

GO DEEPER

Understand the result before you act

CM1, CM2 and CM3 explained

CM1 shows revenue after product cost, CM2 removes variable operations, and CM3 also removes performance marketing. Businesses use different labels, so apply the definitions shown here consistently when comparing products or months.

CLEAR ANSWERS

Contribution Margin Calculator (CM1, CM2, CM3) FAQs

How do I use the Contribution Margin Calculator (CM1, CM2, CM3)?+

Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: CM1 = net revenue − COGS. CM2 = CM1 − shipping − packaging − fees − returns. CM3 = CM2 − marketing.

What should I keep in mind when reading the result?+

Always compare CM stages using the same definitions across months and channels.

Do I need to create an account to use this tool?+

No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.

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