> ## 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 (After Fulfillment): Profit After Variable Costs

> Track CM2 for your Shopify store. Calculate profit after COGS, fulfillment, and transaction costs.

<Tip>
  CM2 (After Fulfillment) measures your profit after deducting all variable costs—COGS, fulfillment, and transaction costs—from net revenue.
</Tip>

## Formula

<Info>
  **CM2** = **CM1** − **Shipping Cost** − **Handling Cost** − **Other Fulfillment** − **Gateway Cost** − **Other Transaction**
</Info>

### Formula Components

| Metric                                                                                     | Definition                             |
| ------------------------------------------------------------------------------------------ | -------------------------------------- |
| [**CM1 (Gross Margin)**](/reference/metrics/orders/contribution-margin/cm1)                | Net revenue minus COGS                 |
| [**Shipping Cost**](/reference/metrics/orders/fulfillment/shipping-cost)                   | Cost to ship orders to customers       |
| [**Handling Cost**](/reference/metrics/orders/fulfillment/handling-cost)                   | Per-order handling and packaging costs |
| [**Other Fulfillment Cost**](/reference/metrics/orders/fulfillment/other-fulfillment-cost) | Additional fulfillment expenses        |
| [**Gateway Cost**](/reference/metrics/orders/transaction/gateway-cost)                     | Payment processing fees                |
| **Other Transaction Cost**                                                                 | Additional transaction-related costs   |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Currency                                                             |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Sum                                                                  |

***

## Example

Your Shopify store has **\$75,000** CM1, with **\$8,000** in fulfillment costs and **\$4,500** in transaction costs.

| Component         | Amount       | Calculation         |
| ----------------- | ------------ | ------------------- |
| CM1               | \$75,000     | Starting margin     |
| Shipping Cost     | \$5,000      | Delivery costs      |
| Handling Cost     | \$2,000      | Packaging labor     |
| Other Fulfillment | \$1,000      | Warehouse fees      |
| Gateway Cost      | \$3,750      | 3% processing       |
| Other Transaction | \$750        | Currency conversion |
| **CM2**           | **\$62,500** | \$75,000 − \$12,500 |

***

## How It Works

CM2 builds on CM1 by deducting all fulfillment costs (shipping, handling, other fulfillment) and transaction costs (payment gateway fees, other transaction costs). This gives you a clearer picture of profit after all variable per-order costs—before marketing spend.

***

## When to Use

| Scenario                      | Action                                                       |
| ----------------------------- | ------------------------------------------------------------ |
| Optimizing fulfillment costs  | Compare CM2 across shipping methods to reduce variable costs |
| Evaluating payment processors | Measure gateway cost impact on CM2                           |
| Setting break-even targets    | Know your CM2 before planning marketing spend                |
| Analyzing order profitability | Understand true margin per order before acquisition costs    |

***

## Related Metrics

| Metric                                                                                         | Relationship                               |
| ---------------------------------------------------------------------------------------------- | ------------------------------------------ |
| [CM1 (Gross Margin)](/reference/metrics/orders/contribution-margin/cm1)                        | Input margin before fulfillment deductions |
| [CM2 %](/reference/metrics/orders/contribution-margin/cm2-percent)                             | CM2 as a percentage of net revenue         |
| [CM3 (Contribution Margin)](/reference/metrics/orders/contribution-margin/contribution-margin) | CM2 minus marketing costs                  |
| [Total Fulfillment Cost](/reference/metrics/orders/fulfillment/total-fulfillment-cost)         | Combined fulfillment costs                 |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)